Crypto Futures Exchange CoinFLEX’s Creditors to Own 65% of Firm After Reorganization
CoinFLEX filed for a restructuring in the Seychelles during the summer after suspending withdrawals amid the volatile crypto market.
Sep 26, 2022 at 6:14 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/7G4TFNVOUZCKFN3HSERX3JCQ3Y.jpg)
Troubled crypto futures exchange CoinFlex said it has come to terms with stakeholders for its reorganization process and will turn to an official vote.
CoinFLEX filed for restructuring in the Seychelles this summer as part of a plan to improve its financial situation after suspending withdrawals during June's crypto rout.
In the reorganization creditors would own 65% of CoinFLEX. Meanwhile, existing Ordinary Series A shareholders, including the CoinFLEX founders, would lose their equity stakes. Series B investors are to remain shareholders and can be incentivized with future equity over time in the event they bring value to the business.
Creditors are also to receive recovery tokens (rvUSD), equity and USDC.
CoinFLEX’s team will be allocated 15% of the company through an employee share option plan that would vest over time.
Voting for the plan is set to end Sept. 27 at 4 a.m. UTC. According to Snapshot, CoinFLEX’s plan so far has garnered about 96 million CoinFlEX vote tokens in approval, and 865,000 against.
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Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.