CoinFLEX suspends withdrawals and trading of its own token

The cryptocurrency derivatives platform CoinFLEX has paused user withdrawals due to ‘extreme market conditions’ and ‘uncertainty regarding counterparties’, according to chief executive Mark Lamb.

We have temporarily paused withdrawals on @CoinFLEXdotcom as a protective measure. We are working to resume withdrawals as soon as possible. Please find our announcement here with more details. Thank you for your support.https://t.co/4jqjLx1PVA

— CoinFLEX (@CoinFLEXdotcom) June 24, 2022

Lamb stressed that the counterparty in question is not the hedge fund Three Arrows Capital (3AC) or ‘any credit firm’.

Among the latter are BlockFi and Celsius. The former, according to reports, is troubled by the debt of 3AC and has already liquidated at least part of its positions. The latter — is on the verge of bankruptcy due to insufficient liquidity to pay clients.

CoinFLEX also temporarily halted trading of its own token, FLEX Coin, on the spot market and in perpetual swap contracts.

According to Lamb, the company intends to resume withdrawals when it is ‘in a better position’. CoinFLEX expects to restore all platform functions by June 30.

Earlier, Voyager Digital reduced its daily withdrawal limit to $10,000. The crypto broker faced difficulties repaying the 3AC loan — the company warned it may send the hedge fund a default notice if the latter fails to settle the debt.

As reported, co-founder Kyle Davies said that the hedge fund is considering selling a portion of its assets to rescue itself.

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