CoinFLEX delays resumption of withdrawals

The cryptocurrency derivatives platform CoinFLEX did not resume withdrawals despite plans. The company cited ongoing talks with investors.

On 24 June, CoinFLEX temporarily halted withdrawals of assets due to ‘extreme market conditions’ and ‘uncertainty regarding the counterparty.’ At the time, CEO Mark Lamb clarified that the latter is not a hedge fund, Three Arrows Capital, or ‘any lending firm.’

CoinFLEX also temporarily halted trading of its own token FLEX Coin on the spot market and in perpetual swap contracts. The company had planned to restore all functions by 30 June.

The platform announced the Recovery Value USD (rvUSD) token, offering an annual yield of 20%. By selling the asset, the firm aims to raise $47 million to repay the debts of a well-heeled individual.

The client turned out to be Bitcoin.com founder Roger Ver. The company served him with a notice of default.

On 30 June, Lamb said that a clear path to withdrawing funds at CoinFLEX would only be defined after the rvUSD token sale. According to him, negotiations with investors are ongoing and ‘obligations are growing’.

‘You will receive updates from us as they become available. The goal is to do everything possible to avoid a haircut on client funds, and we remain confident in our ability to resolve this issue,’ he said.

Earlier in June, Celsius, a major crypto lending platform, suspended withdrawals. The company called upon several approaches to solving the problem, and BnkToTheFuture co-founder Simon Dixon proposed a rescue plan involving token issuance.

However, Georgetown University Law professor Adam Levitin called Celsius’s bankruptcy virtually inevitable.

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