CoinFlex to Allow Users to Withdraw up to 10% of their Balance

According to Bloomberg News, CoinFlex will allow users to later withdraw 10% of their balance after suspending withdrawals last month.

On June 29, CoinFlex CEO Mark Lamb revealed on Twitter that cryptocurrency investor RogerΒ VerΒ owes the company $47 million. The founder failed to repay CoinFlex, and the crypto exchange suspended withdrawals in June.

CoinFlex canceled pending withdrawals on July 15 and then closed trading on the platform. After that, users can only withdraw up to 10% of their balance, and the rest will be frozen.

CoinFlex says it has taken legal action to cover losses and is trading with another cryptocurrency after a counterparty to cryptocurrency investor Roger Ver failed to pay a $47 million margin call, negotiating the signing of the joint venture.

The cryptocurrency exchange platform was founded in 2019. The company is a smaller crypto exchange focusing on derivatives trading. CoinFlex’s halt in withdrawals has come at a time when the crypto industry has been experiencing liquidity problems and contagion.

Earlier, Ver had tweeted, “Recently some rumors have been spreading that I have defaulted on a debt to a counter-party. These rumors are false. Ver denies he defaulted on his debt to CoinFlex.

CoinFlex said in July 14: β€œWe are continuing to work on all avenues to resolve this situation. This ranges from possible further withdrawals and potential new equity investors to the acquisition of CoinFLEX and combinations in between.”

The company said it will release its latest update on July 22.

CoinFlex announced in late June that it planned to raise funds by issuing a new token that would offer a 20% annual return. The cryptocurrency exchange plans to issue $47 million in “recovery dollar” tokens as a solution to re-enable withdrawals.

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