The Seychelles court has approved CoinFLEX’s restructuring plan.
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We are pleased to announce the successful approval of CoinFLEX’s restructuring by the Seychelles Courts.
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Please read our full announcement here (https://t.co/VWHEYWwLey) and stay tuned for more information coming later this week.
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— CoinFLEX (@CoinFLEXdotcom) March 7, 2023
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The company said in a statement that trading of blocked assets, including LUSD and LETH, will be suspended until an official court order is issued.
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Following the news, the platform’s native token FLEX rose 17% to $1.91, according to CoinGecko. Since the start of the year the asset has shown positive momentum, climbing from a low of $0.04 to current levels.
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On June 24, 2022, CoinFLEX suspended user withdrawals due to “extreme market conditions” and “uncertainty regarding the counterparty”. To address the issues, the company announced the launch of the Recovery Value USD (rvUSD) token.
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In July the platform announced the resumption of withdrawals in restricted mode and announced a staff reduction to optimize costs.
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In August the company filed for restructuring with the court. According to the document, the exchange intends to raise $84 million to repay debt.
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CoinFLEX chief Mark Lamb clarified that the mentioned “counterparty” is Bitcoin.com founder Roger Ver, who owed the platform $47 million. He was sent a notice of default, and later the exchange turned to the Hong Kong International Arbitration Centre to recover the funds.
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In September, the company’s creditors backed the restructuring early. The plan envisions that debtors will receive 65% of the company’s shares.
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Back in February 2023, CoinFLEX demanded that Blockchain.com return $4.5 million, allegedly borrowed in FLEX tokens in 2022.