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News Report

Troubled CoinFLEX Files for Restructuring in Seychelles

1 min
Updated by Remmy Bahati

In Brief

  • 1. Embattled CoinFlex File For Restructuring In Seychelles
  • 2. CoinFlex Cut Staff To Deliver 60% Cost Reduction
  • 3. CoinFlex Entered $84M Arbitration Against "Large Individual Customer"
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On Tuesday, the troubled Cryptocurrency exchange, CoinFlex, filed for restructuring in a Seychelles court to resolve a shortfall due to a counterparty failing to make a margin call.

The company sent out a notice of its restructuring process in emails to customers on Tuesday. It will seek approval from depositors and the court on a proposal to issue depositors with rvUSD tokens, equity, and locked FLEX Coin.

“We look forward to welcoming a new group of shareholders to CoinFLEX and are glad to be in a jurisdiction where we can quickly resolve this situation and return maximum value to depositors,” CoinFLEX CEO Mark Lamb told Bloomberg.

CoinFlex freezes withdrawals

The restructuring filing comes at a time when the company has just sold its token FLEX Coin (FLEX). CoinFLEX blocked its Crypto withdrawals seeking to recoup $84 million citing “extreme market conditions and continued uncertainty involving a counterparty,” identified by CoinFLEX CEO Mark Lamb as prominent investor Roger Ver, an accusation which Ver tossed.

“Not only do I not have a debt to this counter-party, but this counter-party owes me a substantial sum of money, and I am currently seeking the return of my funds,” Ver said in a tweet on June 28.

Coin flex also said it was raising money to clear its $47 million bad debt and was lobbying investors to meet the margin. Later this month, they coinflex open its withdrawals to 10% , raising hopes the the company was standing on a solid ground .

Huge Layoffs, Record Withdrawals

CoinFLEX is also pursuing legal action against the defaulter Roger Ver in the Hong Kong International Arbitration Centre (HKIAC) but could take up to a year to get a judgment and enforce it against Ver’s assets

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