Coinflex says restructuring plan is approved by Seychelles court

Quick Take

  • Courts in the Seychelles approved Coinflex’s restructuring plans, according to a statement from the company.
  • Coinflex had halted withdrawals last summer. 
  • Next steps will follow after the court issues the written order, which Coinflex expects later this week.

Courts in the Seychelles, where crypto exchange Coinflex is based, approved its restructuring plans on Monday, according to a statement from the company.

The court may publish the written order within the week, Coinflex said.  Until 24 hours after the written order is published, trading locked assets such as LUSD and LETH will remain halted to “allow all locked asset holders to be sufficiently informed.”

The digital currency exchange first suspended withdrawals last June, citing “extreme market conditions and continued uncertainty involving a counterparty.”

By September, the company had unveiled a restructuring plan to turn over more than 65% of its equity to creditors and vest 15% to employees. While investors in it Series A will be wiped out, Series B investors will remain shareholders.

Coinflex is one of many crypto firms to be hit by last May's collapse of the Terra ecosystem, which wiped out $40 billion in investor value in a matter of days. Hedge fund Three Arrows Capital filed for bankruptcy at the start of July and crypto lender Celsius followed a couple of weeks later.

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