CoinFlex CEO Says Withdrawals Unlikely to Resume on Thursday

CoinFlex CEO Says Withdrawals Unlikely to Resume on Thursday

Crypto exchange CoinFlex is “unlikely” to resume withdrawals on Thursday as originally expectedaccording to its CEO Mark Lamb, since the company is still looking for buyers for its $47 million bad debt.

Speaking to CNBC on Wednesday, Lamb said more time was needed before the platform could be reopened for withdrawals.stating:

“We will need more time. And it is unlikely that withdrawals will be enabled again tomorrow.”

The crypto exchange had been betting on a $47 million token offering launched on Tuesday, which is known as Recovery Value USD (rvUSD).. The token offering was created in an attempt to sell off its bad debt after one of its accounts went into negative equity.

In a statement on Tuesday, the firm said it hoped withdrawals could resume as planned by Thursday, but admitted it would be subject to the token issue being fully subscribed.

The company has not given any update on how many tokens have been subscribed to datebut Lamb noted on Wednesday that CoinFlex is in talks with several large funds to purchase the $47 million debt.

In a separate interview with MarketWatch, Lamb said it has been making “significant progress” in its token sale among distressed debt funds, existing customers and investors, adding that tens of millions of dollars in “soft commitments” have surfaced..

The crypto investment platform halted user withdrawals on June 23, citing “extreme market conditions” and “uncertainty surrounding a certain counterparty.”which was later revealed to be the result of a long-time client of the CoinFlex account going into negative equity.

Days later, the CEO of CoinFlexMark Lamb, critical publicly to Roger Ver, “the Jesus of Bitcoin”, on Twitter, claiming that Ver owes the company $47 million after allowing his account to go into negative equity.

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On the same day, Ver – without mentioning CoinFlex by name – denied rumors that he “defaulted on a debt to a counterparty,” instead claiming that the cryptocurrency firm owed him “a substantial sum of money” .Ver was one of the first investors on the exchange and had favorable loan terms.

Lamb continued his dispute on Twitter stating that the “debt is 100% related to his account”, adding that his company “categorically denies that we have any debt with him”.

The recent CoinFlex problems are just another example of a growing number of cryptocurrency investment firms and trading platforms facing liquidity issues. in the midst of a crypto bear market.

The cryptocurrency lending platform Celsius Network is facing potential bankruptcy, while cryptocurrency hedge fund Three Arrows Capital just received a notice of default from Voyager Digital.. It has also been reported that a court in the British Virgin Islands has ordered its liquidation.

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