CoinFLEX claims that Blockchain.com owes 3M FLEX coins worth approximately $4.3 million

A Singapore-based law firm, Nine Yards Chambers LLC, has claimed that Blockchain.com – a veteran crypto firm – has failed to repay $4.3 million in FLEX coins to one of its clients, Coinflex cryptocurrency exchange. According to the law firm, Blockchain.com has until March 7 to confirm that it will refund the CoinFLEX FLEX coins and has set a deadline of March 21 for the transaction to be completed. Furthermore, the law firm has indicated that the initiation of legal proceedings, including but not limited to a formal demand for payment called a statutory demand, has not been ruled out.

“You have failed, refused and/or failed to repay the 3,000,000 FLEX coins that have long since been refunded. If our client is forced to enforce its legal rights against you […] it will naturally look against you for the maximum amount of interest and costs recoverable by law,” the law firm noted.

However, Blockchain.com has disputed the claims made by CoinFLEX exchange, citing that there is no on-chain documentation or data to support the argument.

“CoinFLEX has provided no evidence, documentation or chain data to support their claims,” ​​Blockchain.com said.

According to CoinFLEX, Blockchain.com received 3 million FLEX tokens in loans between March and June of last year. Allegedly, the loan demands are based on an automated market maker (AMM) participation agreement that was allegedly entered into on April 12, 2022.

“CoinFLEX’s claim is completely worthless and a work of fiction by an insolvent company currently being sued by its customers for dissolution,” Blockchain.com said. “CoinFLEX owes Blockchain.com for services rendered which remain unpaid at this time and we will soon initiate collection.”

CoinFLEX and Blockchain.com Market Outlook

Following the cryptocurrency winter of 2022, CoinFLEX temporarily stopped withdrawing its customers’ digital assets on June 23. However, the company reopened withdrawal services a week later and began restructuring. In particular, the company intends to raise about $84 million to offset its loans.

Currently, CoinFLEX boasts over $50 million in interest paid out to clients, over $124 million in total value locked (TVL), and a total trading volume of around $2.05 trillion.

Blockchain.com, on the other hand, is struggling to keep its finances afloat after a $270 million hole from cash lent to bankrupt Three Arrows Capital (3AC). Their ordeal may continue before the two settle their issues in court.

Also, dozens of crypto-related companies have gone bankrupt and have undertaken a restructuring plan to make their customers whole again.

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