Crypto futures exchange CoinFLEX has filed for restructuring in Seychelles as part of its plan to improve its financial situation.
- It applied to the Seychelles Supreme Court for reorganization and restructuring. CoinFLEX will now seek approval from creditors for its restructuring plans.
- On Tuesday, CoinFLEX sent an email to its creditors stating the exchange is looking to implement the proposals outlined last month, which include issuing depositors with recovery tokens, equity and locked FLEX coins.
- CoinFLEX suspended withdrawals in June amid turmoil in the crypto markets, when an individual's account went into negative equity.
- The firm said it was was seeking to recover $84 million from a "large individual customer," identified by CoinFLEX CEO Mark Lamb as prominent investor Roger Ver, a claim which Ver denied.
- CoinFLEX subsequently laid off a "significant number" of its employees in a cost-cutting and restructuring effort. Remaining employees would be mostly focused on product and technology, CoinFLEX said.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.