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Seychelles-headquartered crypto exchange CoinFLEX is planning to start allowing users to make limited withdrawals after suspending the service last month. The exchange announced this development through a blog post on July 14.
To enable limited withdrawals, CoinFlex put together a strategy that involves canceling pending withdrawals and shutting down trading temporarily. The exchange scheduled this plan for 1:00 AM ET on July 15.
The exchange added:
We expect this to last a few hours and will notify you once we are back online for both trading and withdrawals.
CoinFLEX said users would be able to withdraw 10% of their balances after restarting the system. The exchange plans to hold the remaining 90% as locked funds. These funds will appear on accounts as balances but will not be eligible for withdrawal, trading, or use as collateral.
CoinFLEX further noted that its stablecoin flexUSD is not withdrawable until further notice.
Assuring users that it is doing the best it can to fully restore services, CoinFLEX said:
We are continuing to work on all avenues to resolve this situation. This ranges from possible further withdrawals and potential new equity investors to the acquisition of CoinFLEX and combinations in between. We continue to work closely with the significant creditor group.
The exchange added that it would provide further updates on Friday, July 22.
CoinFLEX Takes Legal Action to Recover $84M from Roger Ver
This news comes after CoinFLEX entered arbitration in Hong Kong to recover $84 million in losses. The company attributed the losses to a large individual borrower. The name of the borrower did not come up in the arbitrations.
In a June 28 tweet, Lamb said:
Roger Ver owes CoinFLEX $47 Million USDC. We have a written contract with him obligating him to personally guarantee any negative equity on his CoinFLEX account and top up margin regularly. He has been in default of this agreement and we have served a notice of default.
— Mark Lamb 💪 (@MarkDavidLamb) June 28, 2022
Lamb added that Ver denied the debt, forcing the company to out him publicly. He further noted that CoinFLEX does not owe Ver any money as he alleged.
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
Explaining how the $47 million became $84 million, the exchange said the first estimate did not include the significant losses it incurred after Ver liquidated his FLEX coin positions.