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
What do you think about this subject? Write to us and tell us!
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
