CoinFLEX Files Restructuring Case in Seychelles

CoinFLEX

After CoinFLEX halted withdrawals and restarted in July, the crypto exchange filed a motion to be reformed with the authorities in the Seychelles Islands as the Island houses its headquarters.

The exchange’s troubles reportedly started due to the failure of longtime crypto investor Roger Ver to meet a margin call of $47 million. CoinFLEX has taken him to court to recover their $84 million loss as this is not the only reported issue with him.

The measures were taken after the incident was cutting operational costs by 60%. However, as bottom lines still came up short, the company has been forced to take more drastic measures.

CoinFLEX has decided to undergo a restructuring process in a bid to keep moving and eventually pay back investors with long funds, with only 10% of customer funds available for withdrawal.

As part of the restructuring process, CoinFLEX has requested approval from the Seychelles government to issue RecoveryUSD (rvUSD), equity, and the platform’s proprietary FLEX coin to anxious customers looking to regain control of their funds after withdrawals were halted.

However, this proposed solution may not be well-received by the platform’s users, who would probably prefer to withdraw their deposited funds in their chosen currency.

According to Mark Lamb, the CEO of CoinFLEX , the beleaguered crypto exchange is waiting for a fresh set of shareholders that will possibly allow CoinFLEX to recover and pay back depositors.

”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.”

Despite Mr. Lamb’s positive outlook on the situation, it’s a safe bet that many depositors do not share his cheery outlook – especially those based in countries with robust legal systems and consumer protection laws.

It remains to be seen whether Seychelles authorities will consider this course of action appropriate or push the platform to seek a different procedure before restructuring is approved.

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