Does Blockchain(dot)com Really Owe $4M to CoinFLEX?
- CoinFLEX and Blockchain(dot)com reportedly signed an AMM+ participation agreement
- blockchain(dot)com has until March 7 to confirm its return to the FLEX coins.
Nine Yards Chambers LLC, a Singapore-based law firm, alleged that Blockchain(dot)com failed to return $4.3 million in FLEX coins to one of its clients, Coinflex cryptocurrency exchange. According to the law firm, Blockchain(dot)com’s deadline to confirm that it would return the FLEX coins to CoinFLEX was March 7 and March 21 was the deadline to complete the transaction. The legal team has said it is not prohibited from taking legal action, including but not limited to issuing a formal demand for payment known as a statutory demand.
In response, Blockchain(dot)com stated: “This is completely false.”
This allegation is related to an allegedly signed AMM+ (automated market maker) participation agreement from April 12, 2022. This also happened to be the time when Bitcoin struggled mightily at $40,000.
However, the existence of the agreement itself is entirely speculative. Blockchain(dot)com sources claim that CoinFLEX has no evidence of any such arrangement and that CoinFLEX’s entire claim has no merit at all.
The notice, issued on February 24, says that Blockchain(dot)com has until March 7 to confirm that it will return the FLEX coins, and it has until March 21 to transfer the money. Otherwise, the exchange will be subject to “the initiation of legal proceedings, including but not limited to” a formal payment demand known as a statutory demand, according to CoinFLEX.
According to the letter, Blockchain(dot)com will then have another 21 days to repay the money, which consists of four loans allegedly made between March and June last year.
Blockchain(dot)com received 3 million tokens
Between March and June of last year, 3 million FLEX tokens were lent to Blockchain(dot)com, according to CoinFLEX. Again, the debt allegations are supported by an allegedly signed Automated Market Maker (AMM) participation agreement dated April 12, 2022.
Blockchain(dot)com stated that CoinFLEX’s claim was “completely without foundation and a work of fiction by an insolvent firm currently being sued by its clients for dissolution.” “We will soon begin fundraising efforts for services provided by CoinFLEX to Blockchain.com which are now unprecedented.”
The due date for Blockchain(dot)com’s confirmation of the refund is March 7, according to the official letter written by CoinFLEX. FLEX tokens worth $4.3 million must then be returned by Blockchain(dot)com by March 21.
If Blockchain(dot)com refuses to repay the outstanding loans, CoinFLEX said it will file a statutory claim against the company in court.
In addition to this failure, Blockchain(dot)com also released the information that CoinFLEX is the party that owes money for specific services but has yet to pay. They further state that they will file a lawsuit for the same.
Blockchain(dot)com is currently trying to sell off some of its assets to repair a $270 million accounting error. The company is in damage control mode.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional money exchange systems. She is also fascinated by the blockchain technology and its function.
