CoinFlex Filed For Restructuring In A Seychelles Court
- CoinFlex has filed for a restructuring process in a Seychelles court and aims to resolve the company’s financial crunch after recently cutting its expenses by 50-60%.
- The firm has to recover almost $84 million from a single client who failed a margin call and, according to reports, it is Bitcoin Jesus Roger Ver.
Seychelles-based Crypto exchange platform CoinFlex has recently filed for restructuring in a Seychelles court in an effort to resolve a deficit due to a counterparty’s failure to make a margin call.
According to a report by Bloomberg, customers received an email on Tuesday from the company with information on its restructuring process. CoinFlex is going to seek depositors and the court for approval on a plan to provide depositors with rvUSD tokens, stock, and locked FLEX Coin.
“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,”the troubled company’s Chief Executive Officer Mark Lamb, stated.
Strategies to survive the ongoing situation
Notably, the exchange is among the crypto companies that have been deeply scarred by the ongoing crypto bear market. In late June, when the crypto market was hurting several companies, especially lending service providers, CoinFlex announced the freezing of withdrawals after a counterparty, which it identified as Bitcoin.com CEO Roger Ver, failed to pay a margin call.
Ver has a long history of timely margin top-ups and meeting the margin requirements, claims CoinFlex CEO Mark Lamb. He claims that Ver is kept informed about the situation; however, Ver denied defaulting on any amount owing to CoinFlex and asserted that he owed nothing to the company.
In an effort to minimize expenses, the exchange has allowed a limited amount of withdrawals. Later in July, CoinFlex laid off “a significant number” of employees regardless of their departments and geo-locations. The struggling crypto exchange said that the move was necessary to focus on its primary operations by a 60% cut down on huge maintenance fees.
Moreover, CoinFLEX announced plans to launch the recovery value USD (rvUSD) token later in June as a step toward resolving its withdrawal concerns.
The recent restructuring filing is yet another step by the company to safely come out of the troubles it is currently facing. Moreover, as part of its restructuring process, the exchange will, depending on the outcome of the vote, put more portions available for withdrawal.