After ceasing all withdrawals in June and then partially restarting them in July, Seychelles-based crypto exchange platform CoinFLEX has recently submitted a motion to be restructured to the Seychelles Islands’ authorities.
According to a report by Bloomberg, CoinFLEX has now made the decision to go through a restructuring process in an effort to stay afloat and eventually return investors’ funds that it has locked, with only 10% of client funds being available for withdrawal.
CoinFLEX has also asked the Seychelles government for permission to offer RecoveryUSD (rvUSD), equity, and the platform’s own FLEX coin to anxious users looking to reclaim control of their cash after withdrawals were suspended.
The platform’s users, who would undoubtedly much prefer to be able to withdraw the money they invested in different cryptocurrencies – a decision that is very much in keeping with the primary objective of any cryptocurrency exchange – may not, however, be pleased with this answer.
CoinFLEX waiting for a rescuer
According to Mark Lamb, CEO of CoinFLEX, the exchange platform is eagerly awaiting a new group of shareholders who would hopefully help it turn things around and repay depositors. He stated:
”We look forward to welcoming a new group of shareholders to CoinFLEX and are glad to be in a jurisdiction where we can quickly resolve this situation and return maximum value to depositors.”
According to reports, Roger Ver, a seasoned cryptocurrency investor, failed to meet a $47 million margin call at the start of the exchange’s problems. As a result, CoinFLEX has sued him in an effort to recover a total loss of $84 million. Interestingly, Ver has clearly denied all the accusations.
The struggling company has taken several steps to reduce its operational costs amid the crypto winter market. CoinFLEX has reportedly decided to cut its costs by 60%, but the bottom lines continue to fall short.