Cryptocurrency futures exchange CoinFlex has temporarily suspended all withdrawals citing “extreme market conditions and continued uncertainty involving a counterparty.”
● In a blog post on Thursday, CEO Mark Lamb clarified that the ‘counterparty’ in question was not Three Arrows Capital, the crypto hedge fund currently facing severe solvency problems, “or any lending firm.”
● This later part effectively excludes both Celsius and BlockFi, two popular crypto companies that are also in a financial meltdown. Lamb said CoinFlex expects to resume withdrawals “in a better position as soon as possible.”
● “We will also be halting all FLEX coin trading in perps [perpetual swaps] and spot [trading] in the short term,” he added. FLEX is native to the exchange and is used to pay for trading fees at a much lower cost.
● “We are confident that this situation can be repaired fully with a restoration of all functionality, namely withdrawals,” said Lamb. CoinFlex becomes the latest crypto entity to either halt or limit withdrawals after Celsius, Babel Finance, Finblox, and Voyager Digital.
● FLEX coin fell 4.1% to $4.31 following the news. The coin has tanked 43% since reaching an all-time high of $7.56 in December, according to CoinGecko.