The cryptocurrency derivatives platform CoinFLEX has filed for restructuring in the Seychelles court. Bloomberg reports.<\/p>\n
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.<\/p>\n
\n“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.<\/p>\n<\/blockquote>\n
On June 24, CoinFLEX halted withdrawals by users<\/a> due to ‘extreme market conditions’ and ‘uncertainty regarding the counterparty’. To address the issues, the company announced<\/a> the launch of the rvUSD token.<\/p>\n
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<\/a>.<\/p>\n
The firm has filed with the Hong Kong International Arbitration Centre to recover the debt from Ver<\/a>. 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.<\/p>\n
In July, CoinFLEX announced<\/a> the resumption of withdrawals in a limited mode and announced<\/a> staff reductions.<\/p>\n