CoinFLEX seeks restructuring in Seychelles court

The cryptocurrency derivatives platform CoinFLEX has filed for restructuring in the Seychelles court. Bloomberg reports.

The company has informed clients about the process by email. CoinFLEX intends to raise $84 million to repay the debt, and to obtain from investors and the court approval for a proposal to issue Recovery Value USD (rvUSD) tokens, shares and locked FLEX coins.

“We look forward to the opportunity to welcome a new group of CoinFLEX shareholders and are pleased to be in a jurisdiction where we can resolve this situation quickly,” said the platform’s CEO Mark Lamb.

On June 24, CoinFLEX halted withdrawals by users due to ‘extreme market conditions’ and ‘uncertainty regarding the counterparty’. To address the issues, the company announced the launch of the rvUSD token.

Later, Lamb said that the counterparty in question is Roger Ver, founder of Bitcoin.com, who owes CoinFLEX $47 million. Since ‘Bitcoin Jesus’ did not fulfil his obligations, the company sent him a default notice.

The firm has filed with the Hong Kong International Arbitration Centre to recover the debt from Ver. The initial damage assessment, the platform’s representatives said, was incorrect because it did not account for the founder of Bitcoin.com’s substantial debt in FLEX tokens.

In July, CoinFLEX announced the resumption of withdrawals in a limited mode and announced staff reductions.

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