Cryptocurrency investment platform CoinFLEX has received approval for its restructuring plan from the Seychelles courts, the company announced on its blog on March 7.
The courts are expected to publish the order later that week, the blog post adds. Trading in the blocked assets has been halted for up to 24 hours after the publication of the court order on the restructuring to allow time for the asset owners to be informed.
CoinFLEX suspended withdrawals in June after incurring $47 million in losses when an account went negative without being liquidated. CoinFLEX began allowing users to withdraw 10% of their shares in July and laid off employees to reduce company costs. However, it announced a restructuring plan on September 21.
Under the restructuring plan, creditors would receive 65% of the company and its employees 15%. Series B investors would remain shareholders, but those in Series A financing would lose their stake.
Also on March 7, arose news on Twitter that:
“OPNX will acquire all of CoinFLEX’s assets, including people, technology, and tokens.”
Open Exchange (OPNX) was created by Three Arrows Capital founders Su Zhu and Kyle Davies, and CoinFLEX founders Mark Lamb and Sudhu Arumugam. It claimed to be “the world’s first public marketplace for trading crypto statements and derivatives” when its website launched on Feb. 9.
Kyle, founder of 3AC, said that OPNX will acquire all assets of CoinFLEX including people, tech, and tokens and FLEX will be their main token. FLEX is used to pay fees and 20% of revenue is used to buy and burn FLEX. There are currently 100 million FLEX tokens in circulation, of… https://t.co/jIfl7iIrNs
— Wu Blockchain (@WuBlockchain) March 7, 2023
CoinFLEX announced on its blog Jan. 16 that it would become the new exchange:
“CoinFLEX/Series B creditors will be the largest shareholder class, and we are also discussing other benefits. Any funds raised will be used to grow the company and its equity value to shareholders, including CoinFLEX creditors.”
The Open Exchange supposedly negotiates bankruptcy loans and allows customers to use them as collateral for new loans. Tokenized credits cannot be withdrawn.
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