Struggling Crypto Exchange CoinFLEX Allows Partial Withdrawals!

tamir
Sat, 16 Jul 2022 10:31:54 +0000
Crypto Schemes, Crypto Winter, CoinFLEX, Mark Lamb, Roger Ver

CoinFLEX froze withdrawals three weeks ago due to an alleged loss with its client, the so-called Bitcoin Jesus Roger Ver. The crypto exchange announced that it had launched legal proceedings in Hong Kong to reclaim its $84 million from the Bitcoin Jesus. FinTelegram reported here. The Crypto Winter and its aftermath, along with the Roger Ver case, have apparently led CoinFLEX into a severe liquidity crisis, and it is unclear if or when this can be resolved. However, the crypto exchange announced that it is partially reopening user withdrawals. Stay very cautious!

On June 28, 2022, CoinFLEX CEO Mark Lamb informed via Twitter about the problems with Roger Ver:

Roger Ver owes CoinFLEX $47 Million USDC. We have a written contract with him obligating him to personally guarantee any negative equity on his CoinFLEX account and top up margin regularly. He has been in default of this agreement and we have served a notice of default.
— Mark Lamb (@MarkDavidLamb) June 28, 2022

Starting at 5 am UTC on Friday, July 15, CoinFLEX canceled all current pending withdrawals and returned all funds to the respective account balances. Thereafter, they will shut trading and system access before beginning the process of re-enabling withdrawals. CoinFLEX users will be able to withdraw up to 10% of their funds.

The remaining 90% of user balances will be considered “locked funds,” or funds that appear on their balance but cannot be withdrawn, traded, or used as collateral.

The new guidelines apply to all assets except flexUSD, an interest-bearing stablecoin, which “cannot be withdrawn until further notice,” the CoinFLEX said.

It is still unclear whether CoinFLEX will survive this crypto crisis. They said they would continue to check all options, ranging from possible further withdrawals and potential new equity investors to the acquisition of CoinFLEX and combinations in between. The company scheduled the next update for Friday, July 22.

As with Blockchain.com, we currently recommend extreme caution with CoinFLEX. You should not make any new deposits at this time.