CoinFLEX to enable 10% withdrawals from July 15 News ▸ Bitcoin Cash ▸ Lending
CoinFLEX to enable 10% withdrawals from July 15
The remaining 90% of customer funds will be locked and cannot be withdrawn, traded or used as collateral until further notice.
2 min read
Updated: Jan. 17, 2023 at 4:30 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto trading platform CoinFLEX, which halted withdrawals on June 24, will enable limited customer withdrawals starting 5 am UTC on July 15, the exchange said in a July 14 statement.
At the mentioned time, CoinFLEX will cancel all pending withdrawal requests and shut down trading and system access before enabling withdrawals.
However, CoinFLEX users will only be able to withdraw 10% of their account balances, while the remaining amount will reflect in their account but will be locked. This locked balance cannot be withdrawn or used for trades or as collateral, the statement said.
The withdrawal benefit, however, does not extend to CoinFLEX’s flexUSD stablecoin, meaning that flexUSD deposits will remain locked for the time being. Additionally, since all future positions need to be closed, flexUSD will also not earn any interest, although it may generate yields in the future.
CoinFLEX.US users will be able to withdraw 10% of flexUSD deposits. Furthermore, the smartBCH sidechain maintained by CoinFLEX will remain closed, and withdrawing Bitcoin Cash (BCH) on the smartBCH network will not be possible until further notice.
In its July 9 update, CoinFLEX said it holds 26 million units of its native FLEX Coin, but that it is concerned about the token’s price volatility when trading resumes. Therefore, CoinFLEX said on July 14 that FLEX Coin will no longer count as collateral for loans on the platform.
CoinFLEX had to halt withdrawals after a large individual customer who had a written agreement with CoinFLEX left an $84 million deficit after liquidation. The individual was identified on Twitter by CoinFLEX CEO Mark Lamb as Bitcoin Cash proponent Roger Ver.
He is denying that the debt pertains to him and so we felt the need to clarify to the public that yes – the debt is 100% related to his account. Roger Ver a citizen of the European Union who we believe has significant assets in the US, UK and other relevant jurisdictions
— Mark Lamb 💪 (@MarkDavidLamb) June 28, 2022
According to CoinFLEX, Ver failed to pay $47 million for a margin call. Although CoinFLEX liquidated Ver’s position, the exchange incurred a loss of another $37 million. Therefore, Ver owes $84 million to CoinFLEX, the exchange claims.
On July 11, CoinFLEX announced that it has started arbitration proceedings in Hong Kong against Ver but expects the judgment to take 12 months. Ver, on his part, has been tight-lipped but claimed that it is CoinFLEX that owes him a “substantial sum of money,” and not the other way around. Lamb, however, has denied the claims of CoinFLEX owing any debt to Ver.
Recently some rumors have been
spreading that I have defaulted on a
debt to a counter-party. These rumors
are false. Not only do I not have a debt
to this counter-party, but this counter-
party owes me a substantial sum of
money, and I am currently seeking the
return of my funds.— Roger Ver (@rogerkver) June 28, 2022
During the initial statement announcing the halt of customer withdrawals, CoinFLEX said that it expected to resume withdrawals by June 30, but backtracked later. The exchange is exploring partnership opportunities and looking to raise funds to improve its liquidity. CoinFLEX aims to provide its next update on July 22.
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Bitcoin Cash (BCH) is a cryptocurrency created via a fork of the Bitcoin network.
FLEX
$3.00199
FLEX is the coin that powers CoinFLEX, a physically settled futures exchange.
CoinFLEX
CoinFLEX is a cryptocurrency exchange for spot and margin trading that founded in 2019.