CoinFLEX Restarts Withdrawals With 10% Limit
Customers still won't be able to withdraw the platform's native token, though.
Jul 14, 2022 at 12:41 p.m. UTC
Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.
Physical futures crypto exchange CoinFLEX is now allowing customers to withdraw 10% of their account balances, excluding its flexUSD (FLEXUSD) stablecoin.
- Last month, the crypto firm suspended withdrawals after an individual's account went into negative equity during the market crash, affecting the exchange's balances.
- “We will be making 10% of user balances available for withdrawal with the exception of flexUSD, which cannot be withdrawn until further notice,” CoinFlex’s co-founders Sudhu Arumugam and Mark Lamb said in a blog post on Thursday. The remaining 90% of user funds will remain locked in customer accounts.
- CoinFLEX recently began arbitration in an attempt to recover $84 million in debt owed by a “large individual customer” as part of a broader revival strategy. The individual was revealed to be prominent crypto investor Roger Ver, a claim that Ver denied on social media.
- The firm said it holds more than 26 million FLEX tokens – valued at over $7 million at current prices – in its inventory. It added that resuming trades would cause market volatility in FLEX's price, which would inadvertently affect the collateral positions of platform users.
- “We are continuing to work on all avenues to resolve this situation. This ranges from possible further withdrawals and potential new equity investors to the acquisition of CoinFLEX and combinations in between. We continue to work closely with the significant creditor group,” the firm's co-founders added in the blog. The company expects to provide an additional update by July 22.
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Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.
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Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.
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