Crypto Futures Exchange CoinFLEX Files For Restructuring in Seychelles
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In an email to its creditors on Tuesday, CoinFLEX stated that it was aiming to put the suggestions put forth last month into action, which included giving depositors equity, locked FLEX coins, and recovery tokens.
CoinFLEX Paused Withdrawals
When a user's account had negative equity amid the upheaval in the cryptocurrency markets in June, CoinFLEX banned withdrawals. The company claimed to be attempting to recoup $84 million from a "big individual customer," who CEO Mark Lamb identified as well-known investor Roger Ver. However, Ver refuted this assertion.
Employee Layoffs
Following this, CoinFLEX made a "substantial number" of layoffs as part of a cost-cutting and restructuring exercise. The remainder of the workforce would be mainly devoted to products and technology. The company also stated its intention to work tirelessly on recovery strategies that would allow it to regain solvency. The corporation discussed the prospect of an acquisition, new equity investors, and future withdrawals. These options were presented in early July, stating that CoinFLEX intended to attract capital from new investors, raise money through its Recovery USD (rvUSD) token, and seek out depositors wishing to convert their deposits into equity.
In late June, Roger Ver, the client, and CoinFLEX moved into arbitration through the Hong Kong judicial system. However, the company warned that it might take up to a year to obtain a judgment and apply it to Ver's assets. After the June cryptocurrency market fall, several businesses, including CoinFLEX, stopped allowing customer withdrawals.