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Source: Сointеlеgrаph

Cryptocurrency exchange CoinFlex has announced a structuring proposal in response to user feedback after the platform is experiencing liquidity issues.

In a blog post on Wednesday, CoinFlex said that under the proposal, which will be subject to a vote and then court approval, creditors will own 65% of the company, while its team members will be allocated 15% of the shares as part of the employee share. option plan. Under the platform, Series B investors will remain shareholders of the restructured company if the plan is approved.

“As with any reorganization, unfortunately, most of the shareholders are wiped out,” said CoinFlex CEO Mark Lamb and Chief Revenue Officer Sudhu Arumugam. “This situation is no different; in doing so, all existing ordinary and series A shareholders of the Company will lose their equity interests, including us.”

The platform added that it will be offering lenders its rvUSD recovery token, shares, and US dollar coin (USDC) instead of its FLEX coin. The SmartBCH Alliance will also take charge of the SmartBCH Bridge under the proposal, using its Bitcoin Cash (BCH) to “swap sBCH tokens held by DeFi SmartBCH users at a 1:1 ratio.”

“The SmartBCH Alliance will become a lender [CoinFlex] on the amount of BCH that he spends to fulfill these obligations. The Alliance will be treated like any other creditor without any change in the position of any of the other current creditors.”

CoinFlex plans to hold a community vote on the proposed restructuring on September 25, with 75% of creditors voting against, which is considered sufficient for acceptance. The company will then submit the plan, along with the vote count, to the Seychelles courts for final approval.

“If everything is in order, we expect this process to take up to six weeks; however, this is just an estimate,” Lamb and Arumugam said.

Related: CoinFLEX Announces Retrenchment in Cost Reduction Measures up to 60%

The exchange suspended withdrawals in June, later saying one “large individual customer” defaulted on tens of millions of dollars of CoinFlex debt, causing liquidity problems. Lamb accused BCH supporter Roger Ver of being that person, while he in turn denied the exchange’s claims.

Source: Сointеlеgrаph

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