Cryptocurrency exchange CoinFlex will file for restructuring in a Seychelles court as it seeks to resolve a shortfall created by a client missing a margin call.
According to Bloomberg, the company said in an email that it will seek approval from depositors and the court on a proposal to issue rvUSD tokens, equity and locked FLEX coin.
$47 million USDC margin call defaulted
“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,” Mark Lamb, chief executive officer of CoinFlex, told Bloomberg.
CoinFlex previously froze withdrawals in June after a counterparty, who they have identified as crypto investor Roger Ver, failed to pay a margin call.
Ver, known as ‘Bitcoin Jesus’, denies he defaulted on debt owed to CoinFlex, a $47 million USDC margin call – Bloomberg state that Coinflex has to recover $84 million from Ver.
Ver is a well-known figure in the crypto industry and an early buyer of Bitcoin (BTC) back when only a handful of people knew about it. His views about the digital asset have earned him the pseudonym.
Lamb wrote on Twitter in July: “Roger Ver owes CoinFLEX $47 Million USDC. We have a written contract with him obligating him to personally guarantee any negative equity on his CoinFLEX account and top up margin regularly. He has been in default of this agreement and we have served a notice of default.”
‘Significant number’ of staff cut
The Seychelles-based company later allowed customers to make limited withdrawals and at the end of July reduced its cost base by around 50-60% and let go of “a significiant number” of staff.
They said at the time: “The staff cuts and non-staff costs that we have made will reduce our cost base by approximately 50-60%. The majority of the team that remain are focused on product and technology, which remains the core of our business.”
Lamb added the company will soon make more portions available for withdrawals as part of the restructure, pending on the result of the vote.
Related
Tamadoge - The Play to Earn Dogecoin
- '10x - 50x Potential' - CNBC Report
- Deflationary, Low Supply - 2 Billion
- Listed on Bybit, OKX, Bitmart, LBank, MEXC, Uniswap
- Move to Earn, Metaverse Integration on Roadmap
- NFT Doge Pets - Potential for Mass Adoption