CoinFLEX Restarts Withdrawals With 10% Limit
The firm is still working on a solution after recently beginning arbitration to recover $84 million from a “large customer.”
Physical futures crypto exchange CoinFLEX is now allowing customers to withdraw 10% of their account balances, excluding its flexUSD (FLEXUSD) stablecoin.
Last month, the crypto firm suspended withdrawals after a certain individual’s account went into negative equity during the market crash, affecting its balances.
“We will be making 10% of user balances available for withdrawal with the exception of flexUSD, which cannot be withdrawn until further notice,” CoinFlex’s cofounders Sudhu Arumugam and Mark Lamb said in a blog post on Thursday. The remaining 90% of user funds will remain locked in customer accounts.
CoinFLEX recently began arbitration in an attempt to recover $84 million in debt owed by a “large individual customer” as part of a broader revival strategy. The individual was revealed to be prominent crypto investor Roger Ver, a claim that Ver denied on social media, by CoinFLEX CEO Mark Lamb.
The firm said it holds more than 26 million FLEX tokens – valued at over $7 million at current rates – in its inventory. It added that resuming trades would cause market volatility in FLEX’s price, which would inadvertently affect the collateral positions of platform users.
“We are continuing to work on all avenues to resolve this situation. This ranges from possible further withdrawals and potential new equity investors to the acquisition of CoinFLEX and combinations in between. We continue to work closely with the significant creditor group,” the firm’s co-founders added in the blog. The company expects to provide an additional update by July 22.
Read more: CoinFLEX Pauses Withdrawals Amid ‘Extreme Market Conditions’ and Counterparty Uncertainty
CoinFLEX,Roger Ver,Debt,Crypto Exchange