After pausing withdrawals last month, CoinFLEX has today announced the resumption of withdrawals.
CoinFLEX announced it will enable limited withdrawals for all its users this week as it continues to work on its recovery plans.
Starting at 5 am UTC (1 pm HKT/SGT) on Friday, July 15, CoinFLEX will cancel all current pending withdrawals and return all the funds to their respective account balance. The platform will then shut down for a few hours to begin the process of re-enabling withdrawals and trading.
Non-FLEX Perp positions
CoinFLEX recommends users close all existing non-FLEX Perp positions by the end of the week.
According to CoinFLEX, many of its users have accounts with open Perp positions that require liquidation when the FLEX Perp mark price is updated. And a section of these accounts would go to the negative equity.
Therefore, to protect creditors on the CoinFLEX platform, balances and positions in all the subaccounts will be merged with their respective main accounts.
After the resumption, 90% of any new smartBCH deposits on CoinFLEX will be locked leaving 10% for trading and withdrawal as BCH.
Withdrawals of BCH on smartBCH network will continue until further notice.
All existing flexUSD balances on CoinFLEX will be locked.
Then 90% of any new flexUSD deposits transferred from a cold wallet leaving only 10% available for redeeming.
And since all futures contracts must be closed, flexUSD will not hold short perp positions meaning holders will not be earning interests for now.
New flexUSD minting has also been suspended until further notice.
FLEX coin withdrawals
Existing FLEX coins will also be locked like other assets. Any new FLEX coins bought on CoinFLEX will however be fully available for withdrawals.
CoinFLEX also noted that they are continuing to work on resolving their current predicament that could lead to allowing further withdrawals. It is also looking for potential new investors or acquisitions or a combination of both as it tries to resolve the situation.