CoinFLEX Files Restructuring Case in Seychelles Court

After the June stop to CoinFLEX withdrawals and the partial restart in July, CoinFLEX filed a motion for restructure with the authorities in Seychelles Islands.

The company’s headquarters actually are located in the islands.

One Margin Call is the Reason for Fallout

Roger Ver, a long-time crypto investor, failed to pay a $47 million margin call. This is alleged to have caused the exchange’s problems. Ver was not the only issue reported – CoinFLEX took him to court to recover a $84 million loss.

The company took a series of internal measures to reduce operational costs up to 60%. The bottom line was still not good enough to justify more drastic measures.

Bloomberg reported that CoinFLEX is now in restructuring mode to remain afloat and pay investors who have funds locked. Only 10% of customers funds are available for withdrawal.

Looking for approval to receive rvUSD or FLEX payouts

CoinFLEX requested permission from the Seychelles government for RecoveryUSD (rvUSD), equity and its proprietary FLEX currency to anxious customers who want to regain control over their funds following withdrawals were stopped.

However, this solution may not be received well by users of the platform. They would prefer to be able to withdraw funds in the currency they choose – which is in keeping with the central purpose and mission of any crypto exchange.

Mark Lamb, the CEO of CoinFLEX, stated that the crypto exchange is anxiously awaiting a new set of shareholders to help it recover its depositors.

“We are looking forward to welcoming new shareholders to CoinFLEX. We are happy to be in a jurisdiction that can quickly resolve these issues and return maximum value for depositors.”

Despite Mr. Lamb’s optimistic outlook on the situation it is safe to assume that many depositors don’t share his optimism, especially those who are based in countries with strong legal systems and consumer protection laws.

For example, rvUSD could not be bought by sophisticated non-US investors for more than a two-day period. Accredited investors, also called sophisticated, have a high net worth, which allows them to make educated but risky bets. This means that CoinFLEX’s investor has an annual income of more than $200k and a net value of more than $1 million.

In the unlikely event that CoinFLEX does not fully recover outstanding liabilities by October 1, 2023, the exchange could close these investors’ positions without recourse. This would leave them in a difficult situation.

It is not clear if the Seychelles authorities will approve this action or push the platform for a different process before restructuring approval.

CryptoPotato’s first post, CoinFLEX Files a Restructuring Case in Seychelles Court, appeared first on CryptoPotato.

Read More

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the””  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Close Bitnami banner