CoinFLEX files for restructuring in Seychelles court amidst crisis

Renowned crypto exchange, CoinFLEX has filed for restructuring in a local court in Seychelles. The crypto exchange revealed this development to its users via mail. Coinflex disclosed that the mail tends to seek the authorization of depositors and customers on a proposal. As indicated, the proposal aims to seek the approval of depositors on issuing them rvUSD tokens, equity, and locked FLEX coin.

The CEO of CoinFLEX, Mark Lamb, reflected his opinion on the proposal. Lamb expressed his excitement at bringing new shareholders aboard. He added that the organization is glad to be in a position to resolve issues swiftly while returning the utmost value to depositors.

The restructuring motion tends to resolve a shortfall due to a counterpart failing to make a margin call. Recall that around June, CoinFLEX halted the withdrawal of funds. The firm blamed the harsh market situation and the dragging uncertainty involving a counterparty.

The firm blamed the crisis on Roger Ver after his balance suffered a massive loss due to the market situation around June. However, the investor dislodged the claims on Social media.

Subsequently, the CEO blamed Investor Roger Ver for defaulting on a loan agreement of USDC worth about $47 million. However, Ver denied the allegations with claims that the firm is yet to settle its agreement with him. 

Since its crisis’s inception, the firm has been working actively to cut its expenses. As reported, around last month, the firm laid a sizable amount of its staff to cut operational costs by 50-60%. Within that period, the crypto exchange resumed a partial withdrawal of funds. In a blog post, CoinFLEX announced that it would allow users to withdraw about 10% of their balance.

CoinFLEX unveiled plans to disclose the recovered value of USD, also known as rvUSD. The plan is geared toward resolving the crisis that the firm is enduring at the moment. It will also help CoinFLEX to release another percentage of users’ funds in its custody. 

Some plans include access to users’ existing balances, creating a locked balances market, issuing rvUSD, and allowing users to air their opinion on a recovery path. In addition, the firm disclosed plans to organize a video session with its community members to engage them on certain issues.

Additionally, the latest development indicates the firm’s effort toward gearing out of the stormy sea. With the restructuring submission, the firm is pursuing about $84 million from Roger Ver after failing a margin call. Plans to resolve the crisis include setting up a poll that will help determine the percentage CoinFLEX will put up for withdrawal.

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