Crypto Exchange CoinFlex Proposes Restructuring Plan

The embattled crypto exchange CoinFLEX has issued a restructuring plan more than a month after it presented itself in a Seychelles court. It was one of several companies that began restructuring after the cryptocurrency crash earlier this year.

According to the latest blog post, CoinFLEX creditors will own 65% of the company, while all existing common stockholders and Group A shareholders will lose their shares. The CoinFLEX team will receive 15% in the form of an employee stock options program that will be granted over time, the statement said. Motivation is to help the team get back on track and grow the business.

On the other hand, Class B investors will continue to be shareholders in the reorganized business and will be incentivized by future equity. A vote on the new proposal is scheduled for next week and will require 75% of creditors to approve the value of CoinFLEX’s CFV token.

restructuring plan

If the proposal is passed, the exchange will submit the terms sheet and supporting documents to the Seychelles courts for approval of the reorganization. If it does not, stakeholders must amend the terms and then return to all creditors for a second vote of approval.

If the reorganization plan gets the green light from the creditors, the judge is satisfied and the conditions are met, CoinFlex estimates that the process will take up to six weeks.

“We are fully aware that this has been a traumatic experience for all of our depositors and stakeholders. With a successful reorganization we hope to get back on the path of growth and become a successful exchange. It won’t happen overnight, and it won’t be easy, but with the support of our new army of shareholders – you guys Guys – we have every opportunity to reach this goal.”

The proposal also states that the BCH Alliance will take responsibility for the SmartBCH Bridge and use its BCH to exchange tokens held by DeFi SmartBCH users on a 1:1 basis. In the meantime, the creditors will receive the redemption value in US dollars (rvUSD), equity and stable USDC.

the case

In late June, CoinFLEX announced that it was halting withdrawals from its platform as a result of “extreme market conditions” and “ongoing uncertainty involving counterparties.” Mark Lamb, co-founder of the platform, later identified BCH attorney Roger Ver as the counterparty and accused him of defaulting on a $47 million loan.

However, Ver dismissed the allegations and instead criticized CoinFLEX, claiming that the investment platform owes him money. The amount was later revised to $84 million, with the exchange starting arbitration proceedings with Ver in Hong Kong court.

The proposed restructuring plan after Crypto Exchange CoinFlex first appeared on CryptoPotato.

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