CoinFLEX to Restart Withdrawals But There’s a Catch

Several weeks after halting withdrawals due to a whale’s account going into negative equity, the crypto exchange has provided more details on how users will be able to withdraw at least certain portions of their assets.

• The company’s latest statement explained that CoinFLEX will “cancel all current pending withdrawals and return all funds to the respective account balances” starting from 5 am UTC this Friday (July 15).
• The exchange will stop trading and system access before it re-enables withdrawals, which will work as follows for now:

“We will be making 10% of user balances available for withdrawal with the exception of flexUSD, which cannot be withdrawn until further notice.”

• The remaining 90% will appear in users’ accounts, but “they will not be available for withdrawals, trades, nor be counted as collateral on CoinFLEX.”
• The exchange froze withdrawals following last month’s market crash on June 26. Since then, the company’s CEO accused Roger Ver of defaulting on his debt worth nearly $50 million, but Ver dismissed the claim shortly after.
• Earlier in July, CoinFLEX issued another update informing that it will take legal action to try to recover the missing funds.
• The July 14 update reassured that the company is “continuing to work on all avenues to resolve this situation.” This includes looking for new equity investors and even considering the sale of the exchange.