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.

AccessTimeIconSep 26, 2022 at 6:14 p.m. UTC
Updated Sep 26, 2022 at 6:33 p.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

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.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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.

Author placeholder image

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.


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.


Author placeholder image

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.