CoinFLEX Reopens Limited Customer Withdrawals

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CoinFLEX Reopens Limited Customer Withdrawals

Customers can now withdraw up to 10% of their balance.

Key Takeaways

  • CoinFLEX has announced that customers are now able to withdraw up to 10% of their balance, excluding flexUSD.
  • The firm also mentioned possible recovery plans including further withdrawals, new equity investors, and an acquisition.
  • CoinFLEX’s insolvency is due to a dispute with Bitcoin advocate Roger Ver, who supposedly owes the company $47 million.

Troubled crypto exchange CoinFLEX reopened withdrawals today, allowing users to withdraw 10% of their balance.

Customers Can Withdraw 10% of Balance

After three weeks of suspended services, CoinFLEX will now allow customers to withdraw a portion of their funds.

The firm said that it will “enable limited withdrawals for all users this week.” Specifically, customers will be able to withdraw 10% of their balances excluding flexUSD, which remains frozen.

CoinFLEX also said that it will “work with a laser focus on … recovery plans” that will allow it to regain solvency. It mentioned the possibility of further withdrawals, new equity investors, and an acquisition of the company.

Those possibilities follow plans mentioned in a July 9 announcement. That update suggested that CoinFLEX is attempting to raise funds from new investors, seeking depositors willing to turn their deposits into equity, and raising funds through its Recovery USD (rvUSD) token.

That update also suggested that CoinFLEX was in the process of liquidating collateral but maintained a deficit of $84 million.

CoinFLEX Seeks Arbitration

CoinFLEX suspended customer withdrawals on June 23 due to issues with a then-unnamed counterparty. At the time, the firm planned to reopen withdrawals by June 30.

That date came and went and the company did not reopen withdrawals. Rather, the company’s problems worsened: on June 28, it claimed Bitcoin advocate Roger Ver owed the company $47 million, while Ver denied those statements.

CoinFLEX said last week that it is entering arbitration with a customer—presumably Ver—via the Hong Kong legal system. The company says that it could take up to a year to receive a judgement and enforce it against Ver’s assets internationally.

CoinFLEX was one of several crypto companies to suspend customer withdrawals over the past month. Others include Celsius and Voyager Digital (both of which have filed for bankruptcy) as well as Vauld and Babel Finance.

Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies.

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