CoinFLEX, a well-known crypto futures exchange has applied for restructuring at a Seychelles court.
This happens two months after the exchange temporarily halted withdrawals, before allowing a restricted withdrawal in mid-last month.
The recent move with filing for restructuring is part of the exchange’s efforts to address a shortfall caused by a counterparty that failed to make a margin call.
However, the exchange said it would seek approval from depositors on a proposal for recovery value USD (rvUSD tokens), equity, and locked FLEX Coins to depositors.
Mark Lamb, CoinFlex’s Chief Executive Officer, spoke optimistically.
“We look forward to welcoming a new group of shareholders to CoinFLEX and are glad to be in a jurisdiction where we can quickly resolve this situation and return maximum value to depositors.”
Previous events
CoinFLEX stopped withdrawing funds on June 23 due to the uncertainty surrounding a counterparty and the severe crypto market conditions. The exchange suspended trading of its native token FLEX Coin (FLEX), spot trading, and perpetual contractual trading.
On July 22, the exchange proposed a plan to compensate depositors amid its efforts to recover the over $84 million debt owed by a “large individual customer.”
CoinFLEX partially reopened withdrawals, allowing customers to withdraw 10% for one week in mid-July. In order to reduce its operating costs, it also cut its workforce.
The cryptocurrency exchange also stated its focus on plans for recovery that would allow it to regain its insolvency. According to the firm, it is open to equity investors and new acquisitions.
