Crypto investment platform CoinFLEX has received approval for its restructuring plan from Seychelles courts, the company Announced March 7 on his blog.
The courts are expected to publish the order the same week, the blog post added. Trading in frozen assets was halted until 24 hours after the court order on the restructuring was published to allow time for asset holders to be informed.
CoinFLEX halted withdrawals in June after incurring $47 million in losses when an account went negative without being settled. CoinFLEX began allowing users to withdraw 10% of their holdings in July and laid off employees to reduce company costs. However, it announced a restructuring plan on September 21.
Under the restructuring plan, creditors would receive 65% of the company and its employees 15%. Series B investors would remain shareholders, but Series A investors would lose their capital.
Also on March 7, reports emerged on Twitter that:
“OPNX will acquire all of CoinFLEX’s assets, including people, technology, and tokens.”
Open Exchange (OPNX) was created by Three Arrows Capital founders Su Zhu and Kyle Davies, and CoinFLEX founders Mark Lamb and Sudhu Arumugam. It claimed to be “the world’s first public marketplace for trading crypto claims and derivatives” when its website launched on Feb. 9.
Kyle, founder of 3AC, said that OPNX will acquire all of CoinFLEX’s assets, including people, technology, and tokens, with FLEX being its primary token. FLEX is used to pay fees and 20% of the revenue is used to buy and burn FLEX. There are currently 100 million FLEX tokens in circulation, of… https://t.co/jIfl7iIrNs
— Wu Blockchain (@WuBlockchain) March 7, 2023
CoinFLEX said in a January 16 blog post that it would be renamed on the new exchange:
“CoinFLEX/Series B creditors will be the largest class of shareholders, and we are also discussing other benefits. All funds raised will be used to grow the company and its capital value to shareholders, including CoinFLEX creditors.”
Related: CoinFLEX Attempts to Reduce Backlash Over Proposed New 3AC Project
The Open Exchange reportedly settles bankruptcy claims and allows clients to use those claims as collateral for new loans. Tokenized claims cannot be withdrawn.
