CoinFLEX files for restructuring in Seychelles court: Bloomberg

Quick Take

  • CoinFLEX filed for restructuring in a Seychelles court, Bloomberg reported.

  • The firm is seeking court approval to issue depositors with rvUSD tokens, equity and FLEX Coin.

Crypto exchange CoinFLEX has filed for restructuring in Seychelles, Bloomberg reported on Tuesday. 

CoinFLEX announced the restructuring process in emails to customers on Tuesday. "It will seek approval from depositors and court on a proposal to issue depositors with rvUSD tokens, equity, and locked FLEX Coin," Bloomberg said.

“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,” CoinFLEX CEO Mark Lamb told Bloomberg. 

The restructuring motion was filed as the company sought to "resolve a shortfall due to a counterparty failing to make a margin call," according to the Bloomberg report.   

CoinFLEX suspended withdrawals on June 23, citing “extreme market conditions and continued uncertainty involving a counterparty.” Several days later, Lamb accused investor Roger Ver of defaulting on a loan agreement worth $47 million in USDC. But Ver denied the accusation, saying he was the one owed money. 

CoinFLEX has partially resumed withdrawals. The company announced in a July 14 blog post that it would allow users to withdraw up to 10% of their balance.

The company laid off a “significant” number of its team last month in a bid to reduce costs by 50-60%. 

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