CoinFLEX reopens limited customer withdrawals
Important takeaways
- CoinFLEX has announced that customers are now able to withdraw up to 10% of the balance, excluding flexUSD.
- The company also mentioned possible recovery plans, including further withdrawals, new equity investors and an acquisition.
- CoinFLEX’s insolvency is due to a dispute with Bitcoin lawyer Roger Ver, who allegedly owes the company $ 47 million.
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Annoyed crypto exchange CoinFLEX reopened withdrawals today, so users can withdraw 10% of the balance.
Customers can withdraw 10% of the balance
After three weeks of suspended services, CoinFLEX will now allow customers to withdraw part of their money.
The company said it will “enable limited withdrawals for all users this week.” Specifically, customers will be able to withdraw 10% of their balances exclusive of flexUSD, which remains frozen.
CoinFLEX also said it will “work with a laser focus on … recovery plans” that will allow it to regain solvency. It mentioned the possibility of further withdrawals, new equity investors and an acquisition of the company.
These opportunities follow the plans mentioned in an announcement on 9 July. This update suggests that CoinFLEX seeks to raise funds from new investors, seeks depositors willing to convert their deposits into equity, and raise funds through its Recovery USD (rvUSD) token.
This update also indicated that CoinFLEX was in the process of liquidating collateral, but maintained a $ 84 million deficit.
CoinFLEX seeks arbitration
CoinFLEX suspended customer withdrawals on June 23 due to problems with a then unnamed counterparty. At that time, the company planned to reopen withdrawals by June 30.
That date came and went, and the company did not reopen withdrawals. Rather, the company’s problems got worse: On June 28, it claimed that Bitcoin lawyer Roger Ver owed the company $ 47 million, while Ver denied these statements.
CoinFLEX said last week that it is entering into arbitration with a customer – presumably Ver – via Hong Kong’s legal system. The company says that it can take up to a year to get a judgment and enforce it against Ver’s assets internationally.
CoinFLEX was one of several crypto companies that suspended customer withdrawals in the last month. Others include Celsius and Voyager Digital (both of which have filed for bankruptcy) as well as Vauld and Babel Finance.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH and other cryptocurrencies.
