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CoinFLEX unveils business restructuring plan

by Chief editor

Cryptocurrency derivatives platform CoinFLEX has unveiled a business restructuring plan.

The company has proposed to transfer 65% of capital to lenders, 15%, to be distributed over time under the ESOP, to be allocated to the CoinFLEX team, and to leave Series B investors as shareholders.

The plan also includes an agreement with BCH Alliance under which it will take responsibility for SmartBCH Bridge and use its own assets to exchange sBCH for BCH at a 1:1 ratio.

CoinFLEX had previously reported that lenders would be compensated in the form of Recovery Value USD (rvUSD) tokens, equity and FLEX Coin, but the company dropped that idea.

CoinFLEX is now offering USDC instead of FLEX Coin. The company has decided to allocate its FLEX Coin holdings “for business development” or to keep them on the balance sheet, which both the Series B investors and the Ad Hoc Group have agreed to, according to the exchange.

The main stakeholders have come to an agreement during negotiations, with the proposal to be further voted on by the community at Snapshot, according to a CoinFLEX statement.

“The team will launch a separate blog explaining how the vote will take place and what steps need to be taken to be ready for the vote.”

The price, fixed at 1pm Moscow time on 22 September 2022, will be used to calculate the dollar value of locked balances.

CoinFLEX suspended withdrawals from the platform in June, and in August notified customers by email that it was planning to restructure the business. The exchange cited “extreme market conditions” and that investor Roger Wehr had defaulted on his $47 million loan agreement. In July, CoinFLEX partially allowed withdrawals.

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