CoinFLEX announced today that withdrawals will resume after a month of pauses.
CoinFLEX has announced that it will allow limited withdrawals to all its users this week, as it continues to work towards its recovery plans.
CoinFLEX will immediately cancel any pending withdrawals at 5 am UTC (1pm HKT/SGT), Friday July 15th and return all funds to respective accounts. To begin the process of reenabling withdrawals and trading, CoinFLEX will shut down for several hours.
Perp positions are non-FLEX
CoinFLEX suggests that users close all non-FLEX Perp positions before the end of each week.
CoinFLEX claims that many of its users have open Perp position accounts that need to liquidate when the FLEX Perp price is updated. A portion of these accounts could be considered negative equity.
In order to protect creditors using the CoinFLEX platform the balances and positions of all subaccounts are merged with the main accounts.
Following the resumption of trading, 90% of smartBCH deposits made on CoinFLEX will be locked. The remaining 10% can be traded or withdrawn as BCH.
The withdrawal of BCH via smartBCH network is continuing until further notice.
All flexUSD balances that are currently on CoinFLEX will remain unchanged.
90% of new flexUSD deposits must be transferred from cold wallets. Only 10% can be redeemed.
Because all futures contracts have to be closed, flexUSD does not intend to hold short perp positions. Holders will therefore not be earning interest at the moment.
The new minting of flexUSD was also suspended, pending further notice.
FLEX coin withdrawals
Existing FLEX currency coins will be secured as any other asset. However, any FLEX coins purchased on CoinFLEX can be withdrawn at anytime.
CoinFLEX noted that they are still working to resolve their current predicament, which could allow for further withdrawals. It is actively seeking new investors or acquisitions, or a combination of both, to help resolve the situation.