CoinFLEX withdrawal ban: When will crypto exchange lift account freeze?

CoinFLEX CEO vowed to fully communicate between the company and customers during the ban

Representation of Bitcoin cryptocurrency and an illustrative chart                                 
The next update regarding the CoinFLEX withdrawals pause should be on 27 June – Photo: Getty Images
                                

Crypto derivatives exchange CoinFLEX has announced it is “pausing all withdrawals” on its platform due to “extreme market conditions” and “continued uncertainty involving a counterparty”.

Mark Lamb, CEO of CoinFLEX announced the move in a blog post. Lamb remained optimistic and added: “We fully expect to resume withdrawals in a better position as soon as possible.”

The CoinFLEX CEO said he wished to ensure clear communication between the company and its customers throughout the pause in withdrawals.

Halting perps and spot trading for FLEX

The crypto derivatives exchange added that it will also be halting all FLEX coin trading in perpetual contract (perps) and spot trading in the short term.

FLEX is the coin that powers CoinFlex and was launched in July 2019.   

The next update regarding the withdrawal pause is anticipated to come on 27 June and the estimated time for withdrawals to restart is 30 June.

‘Counterparty’ is not Three Arrows Capital

Lamb also clarified that the “counterparty” involved is not the crypto hedge fund Three Arrows Capital (3AC) or any other lending firm.

Currently, 3AC is liquidating its positions, which has led to a subsidiary of Voyager Digital, a US-based cryptocurrency platform, announcing it may issue a default notice to 3AC if the crypto hedge fund fails to repay its loans.

Voyager said it had loaned to 3AC 15,250 Bitcoin (BTC), which is worth just over $310m (£251m), and $350m (£284m) USD Coin (USDC), Reuters reported.

Initially, Voyager asked 3AC for the repayment of $25m (£20m) in USDC by 24 June and then later requested the entire amount to be repaid by 27 June, but Voyager has not received payment thus far.

Voyager is also discussing what legal action it could take to recover the funds from 3AC.

It is thought that 3AC is exploring options on how to deal with liquidating its positions, such as a sale of its assets and a bailout from another firm, the Wall Street Journal has reported.

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