According to the CEO of cryptocurrency exchange CoinFlex, withdrawals are unlikely to resume soon, which was previously hoped. The company is also currently seeking buyers for its $47 million debt.
Pay off debts
The crypto exchange launched a token offering last Tuesday called “Recovery Value USD,” or rvUSD for short. The token offering is an effort to minimize the company’s debt, which is a staggering $47 million. The company’s CEO, Mark Lamb, said it simply needed more time for the platform to resume its withdrawals. Lamb said the following about this:
We will need more time. And it’s unlikely that withdrawals will be turned back on tomorrow.
Talking to major funds
Earlier, the company hoped that shooting could resume today. They immediately indicated that it would be subject to the full registration of the token issue.
Unfortunately, there has been no update on the numbers of tokens sold. Lamb has indicated that they are in talks with major funds to buy up their $47 million debt. Reportedly, they have already been able to achieve some success, as several tens of millions of dollars have already been awarded.
Stopping recordings
A week ago, on June 23, the crypto platform halted its withdrawals. Reference was made to ‘extreme market conditions’ and ‘uncertainty surrounding a particular counterparty’. Later, these sentences turned out to be the result of a longtime CoinFlex customer going into negative equity.
A few days later, CoinFlex CEO publicly pointed the finger at Roger Ver Twitter, claiming that Ver owed the company $47 million USDC after he let his account go into negative equity. The company’s debt is said to be 100% related specifically to his account.
Unfortunately, CoinFlex’s recent troubles appear to be just another example of a growing number of crypto investment firms and trading platforms dealing with liquidity issues amid an ongoing crypto bear market. It is not known if more crypto companies will have similar problems in the near term.