Due to an unknown whale’s delinquent account, CoinFLEX has lost $84 million in liquidity. CoinFLEX is striving fast to recover as much liquidity as possible.
CoinFLEX, a cryptocurrency investment platform, is proceeding with its plan to collect $84 million in money by initiating arbitration proceedings in Hong Kong against an individual account holder.
Sudhu Arumugam and Mark Lamb, co-founders, admitted in a July 9 release that the ruling would grant access to the individual’s “global assets,” and that their lawyers were “quite certain” they could enforce the award.
“We have commenced arbitration in HKIAC for the recovery of this $84m as the individual had a legal obligation under the agreement to pay and has refused to do so.”
However, the business warned that getting a verdict in Hong Kong might take up to a year.
“We will thereafter be able to enforce that judgment against his worldwide assets,” it continued.
Though the “big individual customer” was not named in the release on Saturday, Lamb has previously claimed publicly that Bitcoin Cash (BCH) proponent Roger Ver was the defaulting customer in question.
Ver, on the other hand, has disputed that he owes the firm any money. He responded to the rumors by claiming that an unnamed counterparty owed him “a significant sum of money.”
Arumugam and Lamb stated in the most recent update that the guy was “wasting time” by promising to replenish his account with monies that never materialized.
They further stated that liquidating his investments resulted in significant slippage, which raised the amount the firm claims he owes. Initial estimates set the due amount at $47 million, but after liquidating his FLEX token positions, that figure was raised to $84 million.
FLEX is the CoinFLEX platform’s native token.
“Unfortunately, this customer failed to honounderations under this written agreement. Our lawyers believe that we have a very strong case and have commenced legal actions to recover debts owed to us pursuant to this agreement.”
Would There Be Limited Withdrawals On CoinFLEX Soon?
Withdrawals have been halted since June 23 due to the conflict between CoinFLEX and the particular whale depositor. Lamb stated that he wanted to have them operational again by the beginning of July.
According to Arumugam and Lamb, they now want to provide “temporary liquidity for CoinFLEX depositors” by initially making 10% of their account balances accessible for withdrawal.
There is no set timeframe for this, but the duo anticipates that withdrawals would take a week or less.
CoinFLEX has been working on ways to compensate for thefund’ses missing from the whale investor’s account.
In addition to liquidating accounts and pursuing legal action, the firm stated at the end of June that part of its funds recovery plan included releasing 47 million Recovery Value USD (rvUSD) tokens for $1 apiece. It may also give some depositors the chance to convert their funds into stock in the company.
The company is in “close talks” with an undisclosed prominent US exchange about forming a collaboration that might assist CoinFLEX’s viability.
Following the statement, the price of FLEX Coin plunged 71% to $0.27 on July 9. According to CoinGecko, it is currently trading at $0.30.
