Crypto Exchange CoinFLEX Plans To Restructure Tech Tribune France

CoinFLEX is one of the crypto exchanges that suffered during the downtrend and is currently preparing for a restructuring. Following its reorganization applications to the Seychelles court, the exchange published its restriction plan.

The crypto winter in the first half of the year brought severe drought to several crypto assets. As a result, the entire crypto market lost many billions of dollars as asset values ​​continued to decline. The crisis escalated with the collapse of the algorithmic stablecoin Terra and its ecosystem.

Then came the collapse of many crypto-related businesses in the following months. Some companies used measures to mitigate the impact and survived the crisis. However, most of the employees of the companies concerned have been made redundant. In addition, other drastic measures have been implemented to reduce business operating costs.

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However, some companies could not weather the storm as the intensity of the crisis increased. Therefore, some troubled companies have filed for bankruptcy to withhold users’ lawsuits.

CoinFLEX Restructuring Plan

According to the details, CoinFLEX gives its creditors 65% of the company’s shares. His team will receive 15%, a stock option plan that will vest over time. The goal is to help the team get back to work and grow the business again.

There seems to be no hope for all existing ordinary and Series A shareholders of CoinFLEX. They will eventually lose their stock market holdings. However, the company plans to retain the equity positions of its Series B investors. As a result, they will receive rewards with the company’s future equity.

After establishing his plan, there will be a vote on the new proposal by next week. According to the value of CoinFLEX’s CFV token, the restructuring plan will require the approval of around 75% of creditors.

If the proposal is accepted, CoinFLEX will seek approval for the restructuring from the courts of Seychelles. This will be done by presenting the condition sheet and other supporting documents to the courts. But once the proposal fails, stakeholders will return to their drawing board to readjust the term. Then there will be another ballot of creditors for possible approval.

CoinFLEX estimated six weeks for the whole process to go through seamlessly. This involves meeting the required conditions, obtaining positive votes from creditors and satisfying the judge.

Fall of the CoinFLEX crypto exchange

Due to the first-half crypto winter, CoinFLEX lost its footing. The exchange then halted withdrawals from its platform and noted the influence of continued uncertainty with a counterparty.

Cryptocurrency Market Trends in Red | Source: Total Crypto Market Cap at TradingView.com

Later, Mark Lamb, the co-founder of CoinFLEX, pointed out that a BCH supporter, Roger Ver, was the counterparty. Lamb alleged that Ver defaulted on a $47 million loan from the stock exchange.

Ver denied the charges and fought the exchange on the grounds that CoinFLEX owed him. Then there was the arbitration of the exchange with Ver in a Hong Kong court, the amount of the debt being 84 million dollars.

Featured Image from Pixabay | Charts by TradingView

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Crypto Exchange CoinFLEX Plans To Restructure Tech Tribune France


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