CoinFLEX files for arbitration in Hong Kong to recover $84M

CoinFLEX is among the crypto firms affected by the bearish conditions across the market. The crypto investment firm is looking into how it can reclaim $84 million worth of funds from the whale account.

 CoinFLEX to arbitrate on $84M deficit

The CoinFLEX arbitration process with the unnamed whale account is expected to happen in Hong Kong. The co-founders of the platform, Mark Lamb and Sudhu Arumugam, said that the process would grant access to the whale’s assets, adding that their legal team was confident that a solution would be met.

The two executives said that the whale account had a legal obligation to make these payments but had failed to do so. The firm also added that the arbitration process could take a year to realize a judgment. The judgment is expected to give CoinFLEX access to the whale’s “worldwide assets.”

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The company did not formally reveal the whale’s identity that had defaulted in repaying the $84 million. However, Lamb had previously disclosed that Roger Ver, popularly known as the “Bitcoin Jesus,” was the one who defaulted on this loan.

Ver and CoinFLEX engaged in an online spat, with Ver denying that he owed money to CoinFLEX. He countered these claims saying that CoinFLEX owed him money and not the other way around.

CoinFLEX plans to launch limited withdrawals

Following the whale’s default, CoinFLEX suspended all withdrawals on June 23. The company had promised users that they would reopen withdrawal services by the start of this month, but this never happened.

Lamb and Arumugam said they had a plan to launch limited withdrawals by allowing users to withdraw 10% of their account balances. CoinFLEX has not announced when this option will be launched.

The company has also been working on how to recover the funds caused by the whale’s default. Towards the end of June, it said that part of the funds’ recovery plan would involve issuing 47 million Recovery Value USD (rvUSD) tokens trading at $1 each. It has also considered allowing depositors to acquire a stake in the company.

CoinFLEX is reportedly engaged in discussions with a leading cryptocurrency exchange in the US regarding a partnership. This partnership could boost the viability of CoinFLEX. FLEX, the native token for the CoinFLEX ecosystem, has dropped by over 5% during the past 24 hours to trade at $0.30.

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