Crypto investment platform CoinFLEX has received approval of its restructuring plan by the courts of Seychelles, the company announcement March 7 on his blog.
Courts are expected to issue the order the same week, the blog added. Trading in locked-in assets was halted until 24 hours after the court order on the restructuring was issued to allow time for asset holders to be notified.
CoinFLEX halted withdrawals in June after suffering $47 million in losses when an account went negative without being liquidated. CoinFLEX began allowing users to withdraw 10% of their holdings in July and laid off employees to cut company costs. Nevertheless, he announced a restructuring plan on September 21.
Under the restructuring plan, creditors would receive 65% of the company and its employees 15%. Series B investors would remain shareholders, but Series A investors would lose their equity.
Also on March 7, reports emerged on Twitter that:
“OPNX will acquire all assets of CoinFLEX, including people, technology and tokens.”
The Open Exchange (OPNX) was created by Three Arrows Capital founders Su Zhu and Kyle Davies and CoinFLEX founders Mark Lamb and Sudhu Arumugam. It claimed to be “the world’s first public market for cryptocurrency trading and derivatives” when it launched its website on February 9.
Kyle, founder of 3AC, said that OPNX will acquire all of CoinFLEX’s assets, including people, technology, and tokens, and that FLEX will be their primary token. FLEX is used to pay fees and 20% of revenue is used to purchase and use FLEX. There are currently 100 million FLEX tokens in circulation, of which… https://t.co/jIfl7iIrNs
– Wu Blockchain (@WuBlockchain) March 7, 2023
CoinFLEX said in a January 16 blog post that it would be rebranded to the new exchange:
“CoinFLEX/Series B creditors will be the largest class of shareholders, and we are also discussing other benefits. All funds raised will be used to grow the business and its net worth for shareholders, including creditors of CoinFLEX.
Related: CoinFLEX Tries to Reduce Backlash on Proposed New 3AC Project
The Open Exchange trades bankruptcy claims and allows customers to use these claims as collateral for new loans. Tokenized claims cannot be withdrawn.