CoinFLEX cancels withdrawals resumption plan

Quick Take

  • Withdrawals are still suspended citing continuing talks with investors on the rvUSD token, CoinFLEX said Thursday.

Crypto firm CoinFLEX announced it would not resume withdrawals as initially planned, following a suspension last week.

The withdrawal function is still suspended, with the firm citing how the company continues to talk with investors interested in the Recovery Value USD (rvUSD). CEO Mark Lamb wrote in a statement that CoinFLEX will announce the path towards enabling withdrawals once the token sale is fully committed. 

CoinFLEX paused withdrawals on June 23 due to “extreme market conditions and continued uncertainty involving a counterparty.”

The company immediately clarified that the counterparty in question was not Three Arrows Capital, the under-fire crypto hedge fund. The suspension announcement was immediately followed up by an estimation that the withdrawals would have resumed on June 30. Later, it emerged that the firm is in a dispute with long-time bitcoin investor Roger Ver.

The company previously announced on Tuesday a plan to raise funds by issuing a new token, rvUSD, that promises a 20% annual return. The token was raised in order to resume withdrawals on its platform. 

“The goal is to do everything possible to avoid haircuts to customer funds,” CEO Mark Lamb wrote in the statement. “And we remain confident in our ability to bring this to resolution.”

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.