Crypto Futures Exchange CoinFLEX Files for Restructuring in Seychelles
The exchange will now seek approval from creditors for its restructuring plans.
Aug 10, 2022 at 8:26 a.m. UTCUpdated May 11, 2023 at 4:23 p.m. UTC
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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.
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Jamie Crawley is a CoinDesk news reporter based in London.