Co-founders of the crypto-asset exchange CoinFLEX were announced on the 9th. He explained the background of the suspension of withdrawals and the future recovery plan for resuming withdrawals.
CoinFLEX said it has begun arbitration proceedings at the Hong Kong International Financial Center to recover about $84 million in debt from a customer. The customer was obliged to personally make up for any shortages in his account after closing his position and adding the margin, but the deal was not fulfilled.
Initially, CoinFLEX estimated the loss on this customer to be $47 million. However, he later found a loss in closing the position of FLEX Coin, and eventually found that the customer’s account had a final deficit of $84 million.
CoinFLEX outlines plan to recover $84 million, raise capital from new investorshttps://t.co/L4TTZGgMnm
— The Block (@TheBlock__) July 9, 2022
“The investor is personally obliged to pay the full amount and we are confident that our lawyer can enforce the ruling against him,” CoinFLEX explained. However, the arbitration procedure is estimated to take about 12 months before a judgment is issued in Hong Kong.
CoinFLEX explained that they would like to find a plan to create temporary liquidity for depositors before the final problem is loved. It is considering making it possible to withdraw 10% of the account balance.
CoinFLEX also revealed that it is in talks with a major US exchange, ATS (Alternative Trading Venture) platform, aiming to launch a joint venture as a future business plan.
