Mark Lamb, the CEO of CoinFlex, said that the exchange needs more time before users can withdraw their funds again.
According to CEO Mark Lamb, cryptocurrency exchange CoinFlex is “unlikely” to begin withdrawals on Thursday, June 30 as planned, while the company continues to seek buyers for its $47 million bad debt.
In an interview with CNBC on Wednesday, Lamb stated that additional time was required before the platform could be reopened for withdrawals, stating:
“We will need more time. And it’s unlikely that withdrawals will be re-enabled tomorrow.”
The crypto exchange had been betting on a $47 million token offering called as Recovery Value USD, which was launched on Tuesday, June 28. (rvUSD). After one of its accounts slid into negative equity, the token sale was formed in an attempt to sell off its bad debt.
The business said in a statement on Tuesday that it believed withdrawals will resume on Thursday, June 30, as previously planned, but that this would be contingent on the token sale being completely subscribed.
The company has not provided any updates on the number of tokens subscribed to yet, but Lamb stated on Wednesday that CoinFlex is in talks with several significant funds to purchase the $47 million debt.
In a separate interview with MarketWatch, Lamb stated that the token sale has made “substantial headway” among distressed debt funds, existing clients, and investors, with tens of millions of dollars in “soft promises” emerging.
On Thursday, June 23, the crypto investing platform froze user withdrawals, citing “extreme market conditions” and “uncertainty regarding a single counterparty,” which was later found to be the result of a long-time CoinFlex customer’s account going into negative equity.
Days afterwards, CoinFlex CEO Mark Lamb openly accused “Bitcoin Jesus” Roger Ver of owing the company $47 million USDC for allowing his account to go into negative equity on Twitter.
On the same day, Ver rejected claims that he had “defaulted on a debt to a counter-party,” instead of claiming the crypto business owed him “a considerable chunk of money.” Ver was an early investor in the exchange and benefited from advantageous loan terms.
Lamb continued their Twitter feud, claiming that the “debt is 100% tied to his account” and that his company “categorically denies that we have any debts owing to him.”
CoinFlex’s recent problems are just one of a rising number of crypto investment firms and trading platforms experiencing liquidity concerns in the midst of a crypto bear market.
Celsius Network, a cryptocurrency lending platform, is facing possible insolvency, while crypto hedge fund Three Arrows Capital has been served with a notice of default by Voyager Digital. A court in the British Virgin Islands has also reportedly ordered it to liquidate.
