Bitcoin and crypto money exchange platform CoinFLEX has proposed a plan to save depositors and improve their financial situation as they try to collect more than $84 million in debt from a “retail client of large assets”.
After CoinFLEX suffered a significant loss in the assets of this large customer during the cryptocurrency volatility in June, the assets of the customers of the exchange were also affected, and the company suspended withdrawals from the platform.
Cryptocurrency Exchange CoinFLEX Submits Recovery Plan To Its Clients
In a blog post published Friday, CoinFLEX introduced four ideas to “fix the mismatch between their current assets and liabilities caused by the person violating their contract with them.” According to CoinFLEX’s post, the exchange’s recommendation is as follows:
- CoinFLEX pro rata to depositors recovery value USD (rvUSD) It will issue tokens, equity and locked FLEX coins.
- Depositors will approve the new structure and the path that CoinFLEX will follow.
- Additional distribution of existing balances will be made.
- “Locked balances” markets will be created and traded next week.
CoinFLEX’s plan needs to be voted on by depositors and nothing has been finalized yet. The exchange said it plans to hold a video session next week to answer questions from the community. Co-founders Sudhu Arumugam and Mark Lamb also said they will be posting on YouTube or a podcast next week to discuss their vision of reviving the platform.
The company has recently flexUSD It started to allow 10% balance withdrawals from other coins.
*Not investment advice.