CoinFlex is "Unlikely" to Resume Withdrawals on Thursday, June 30
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"We will need more time. And it's unlikely that withdrawals will be re-enabled tomorrow."
Cryptocurrency Exchange Recovery
The cryptocurrency exchange had been counting on Recovery Value USD (rvUSD), a $47 million token offering that went live on Tuesday, June 28.
After one of its accounts reached negative equity, the company decided to launch a token sale to dispose of its bad debt. The business expressed hope that withdrawals would resume as scheduled on Thursday, June 30 but acknowledged that it would depend on the token release being wholly subscribed. The company has not updated the amounts of subscribed tokens, although Lamb reported on Wednesday that CoinFlex is in talks with several sizable funds to settle the $47 million debt.
CoinFlex Paused Withdrawals
On June 23, the cryptocurrency investment platform stopped accepting withdrawals from users, citing "extreme market conditions" and "uncertainty regarding a certain counterparty." It was later discovered that this resulted from a long-time CoinFlex customer's account going into negative equity. Days later, "Bitcoin Jesus" Roger Ver was publicly accused by CoinFlex CEO Mark Lamb of owing the company $47 million USDC after allowing his account to enter negative equity.
The recent struggles of CoinFlex are just one more illustration of how a rising number of cryptocurrency trading and investing platforms are having trouble obtaining liquidity amid a persistent bear market.