CoinFLEX Delays Resuming Withdrawals

Cryptocurrency derivatives exchange CoinFLEX has said it needs more time to resume withdrawals as the exchange is still looking to buy out its $47 million debt.

CoinFLEX CEO Mark Lamb said the exchange is unlikely to resume withdrawals today as it seeks someone to help it with its $47 million debt. The company is currently in talks with several large funds interested in buying its debt. As a reminder, CoinFLEX announced a suspension of withdrawals on June 23, citing extreme market conditions and uncertainty regarding a specific counterparty.

Lamb later publicly accused Bitcoin.com founder Roger Ver of violating contractual obligations that led to the suspension of withdrawals. The CEO of CoinFLEX stated that there is a written contract that obliges Ver to guarantee any negative equity in the account and replenish margin. However, according to Lamb, Ver violated this agreement and his account went negative.

CoinFLEX CEO assured that he has made significant progress in the sale of Recovery Value USD (rvUSD) tokens to distressed debt funds, clients and investors. According to him, the exchange is now considering various options for covering the debt, but cannot name the exact date for the resumption of withdrawals.

“The good news is that the companies and funds interested in covering the debt are extremely well capitalized, and some of them have more than $10 billion under management,” Lamb said.

Recall that earlier, the cryptocurrency lending platform Babel Finance reacted to the market downturn and suspended financial transactions, also prohibiting the withdrawal of funds from client accounts.