CoinFLEX Suspends Withdrawals and Trading of Its Token

by in Cryptocurrency News


Cryptocurrency derivatives platform CoinFLEX has suspended user withdrawals due to “extreme market conditions” and “counterparty uncertainty.” This was announced by the head of the company Mark Lamb.

Lamb stressed that the said counterparty is not Three Arrows Capital (3AC) hedge fund or "any lending firm."

The latter include BlockFi and Celsius. The former is reportedly in trouble due to 3AC's debt and has already liquidated at least some of its positions. The second is on the verge of bankruptcy due to insufficient liquidity to pay income to customers.

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CoinFLEX has also temporarily suspended trading of its native FLEX Coin token in the spot market and perpetual swap contracts.

Lamb said the company intends to resume withdrawals when it is "in a better position." CoinFLEX assumes that they will be able to restore all the functions of the platform on June 30th.

Earlier, Voyager Digital lowered the daily withdrawal limit to $10,000. The crypto broker had problems repaying the 3AC loan - the company warned that it could send a default notice to the hedge fund if the latter did not close the debt.