CoinFLEX, a crypto trading platform that suspended withdrawals on June 24, will allow limited customer withdrawals from 5 am (UTC) on July 15, the exchange said on July 14. statement.
At the above point, CoinFLEX cancels all pending withdrawal requests and shuts down transactions and system access before enabling withdrawals.
However, CoinFLEX users can only withdraw 10% of their account balance and the remaining amount will be reflected in their account but will be locked. According to the statement, this locked balance cannot be withdrawn, traded or used as collateral.
However, the withdrawal benefits do not apply to CoinFLEX’s flexUSD stablecoins. This means that the flexUSD deposit will remain locked for the time being. In addition, flexUSD may generate future yields, but it does not earn interest, as all future positions need to be closed.
CoinFLEX.US users can withdraw 10% of the flexUSD deposit. In addition, the smartBCH sidechain maintained by CoinFLEX remains closed and it is not possible to withdraw Bitcoin Cash (BCH) on the smartBCH network until further notice.
CoinFLEX said in a July 9 update that it owns 26 million units of native FLEX coins but is concerned about token price fluctuations when trading resumes. Therefore, CoinFLEX said on July 14 that FLEXCoin will no longer be counted as collateral for loans on the platform.
CoinFLEX had to stop withdrawing after a large individual customer in writing with CoinFLEX left a $ 84 million deficit after liquidation. This individual is Roger Ver, a proponent of Bitcoin Cash by Mark Lamb, CEO of CoinFLEX on Twitter.
He denies that the debt is related to him, so we felt we needed to make it clear to the general public – the debt is 100% related to his account. .. Roger Ver is a citizen of the European Union, which we believe has significant assets in the United States, United Kingdom, and other relevant jurisdictions.
— Mark Lamb 💪 (@MarkDavidLamb) June 28, 2022
According to CoinFLEX, Ver was unable to pay $ 47 million for margin calls. CoinFLEX liquidated Ver’s position, but the exchange suffered an additional $ 37 million loss. Therefore, the exchange claims that Ver has borrowed $ 84 million from CoinFLEX.
On July 11, CoinFLEX announced that it had begun arbitration proceedings against Ver in Hong Kong, but expects the ruling to take 12 months. Ver has closed his mouth on his side, but claims that it is CoinFLEX that owes him “a considerable amount of money” and not the other way around. However, Ram is Ver. He denied CoinFLEX’s allegations because he was in debt to.
There are some rumors lately
Disseminate what I made the default
Debt to the counterparty.These rumors
It’s fake.Not only is there no debt
To this counterparty, but this counter-
The party owe me a fair amount
Money, and I’m looking for now
Return of my funds.— Roger Ver (@rogerkver) June 28, 2022
CoinFLEX said in its first statement announcing the suspension of customer withdrawal that it plans to resume withdrawal by June 30, but later turned back. Exchanges are looking for partnership opportunities and are looking to raise money to improve liquidity. CoinFLEX aims to provide the next update on July 22nd.
