CoinFLEX Suspends Withdrawals and Trading of Its Own Token

CoinFLEX Suspends Withdrawals and Trading of Its Own Token

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<p>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.</p>
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We have temporarily paused withdrawals on @CoinFLEXdotcom as a protective measure. We are working to resume withdrawals as soon as possible. Please find our announcement here with more details. Thank you for your support.https://t.co/4jqjLx1PVA

— CoinFLEX (@CoinFLEXdotcom) June 24, 2022

Lamb emphasized that the said counterparty is not a Three Arrows Capital (3AC) hedge fund or “by some 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.

CoinFLEX has also temporarily stopped trading of its own FLEX Coin token in the spot market and under perpetual swap contracts. 

According to Lamb, 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 30. 

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

How the Celsius, 3AC and stETH issues will affect the price of Ethereum and the cryptocurrency market

Recall that Kyle Davis, co-founder of Three Arrows Capital, said that the hedge fund is considering selling some assets to save itself.

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