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CoinFLEX Initiates $84 Million Arbitration Along With Limited Withdrawals

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Coinflex arbitration case
Coinflex arbitration case

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CoinFLEX, a platform for cryptocurrency investments, is pressing forward with its goal to retrieve $84 million in money by initiating arbitration proceedings against an individual account holder in Hong Kong.

In their announcement made on Saturday, co-founders Sudhu Arumugam and Mark Lamb admitted that the ruling would enable access to the individual’s assets located anywhere in the globe, and that their attorneys were quite sure that they could enforce the award.

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Taking a Step in the Right Direction

The team at CoinFLEX has started the arbitration process at HKIAC in order to collect these 84 million dollars since the individual in question was under a legal responsibility to pay according to the agreement but had refused to do so. The company, on the other hand, pointed out that the procedure in Hong Kong may take up to a year to complete.

After then, the company will be able to enforce that judgment against all of his assets located around the world.

Despite the fact that the identity of the significant individual client was not included in the notification made on Saturday, Lamb has previously said in public that Bitcoin Cash (BCH) supporter Roger Ver was the defaulting customer in issue.

Ver, on the other hand, has rejected the notion that he owes any money to the company. In response to the rumours, he stated that he is owed a significant amount of money by an unknown counterparty.

According to the most current information provided, Arumugam and Lamb stated that the individual was simply wasting time by making empty promises to replace the individual’s account with the amount that was never delivered.

They went on to argue that the liquidation of his investments resulted in considerable slippage, which led to an increase in the amount that the company claims he owes to them. After he liquidated his FLEX token stakes, the outstanding balance was estimated to be $47 million at first, but after more investigation, the figure was revised upward to $84 million.

FLEX is the platform’s native token, and they also stated that the client did not meet their responsibilities in accordance with a signed agreement. The attorneys representing CoinFLEX are certain that they have a very solid case, and they have initiated legal proceedings to recover monies that are owing to CoinFLEX in accordance with this agreement.

Restriction on Withdrawals by CoinFlex

Since June 23, CoinFLEX has been unable to process withdrawals due to the ongoing conflict between themselves and the particular whale depositor. Lamb expressed his expectation that they will be available to users once more by the beginning of July.

Arumugam and Lamb have said that they now have plans to offer temporary liquidity for CoinFLEX depositors by first making accessible for withdrawal 10% of the depositors’ total account balances. There is no specific timetable for when this will occur, but the two anticipate that the withdrawal process will take no more than a week.

CoinFLEX has been working on several ways to make up for the shortfall in the money that was left by the account of the whale investor.

At the end of June, the company announced that as part of the recovery plan for its fund, the company would be issuing 47 million Recovery Value USD tokens, each of which can be purchased for a price of one dollar. This would be in addition to the firm’s pursuit of legal action and the liquidation of accounts. In addition to this, it may provide some depositors with the opportunity to convert their funds into stock in the firm.

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CoinFLEX is now in active negotiations to form a strategic alliance with a major United States exchange that will remain nameless. This alliance has the potential to significantly improve CoinFLEX’s business prospects.

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