Crypto exchange CoinFLEX is seeking approval from creditors for its corporate restructuring plan.
Cryptocurrency futures exchange CoinFLEX has filed for restructuring as part of its business improvement plan. After applying to the Seychelles high court, CoinFLEX is now seeking approval from creditors for its restructuring plan in an email yesterday.
The CEO Mark Lamb shared:
”We look forward to welcoming a new group of shareholders to CoinFLEX and are glad to be in a jurisdiction where we can quickly resolve this situation and return maximum value to depositors.”
While Mr. Lamb has a positive outlook on the situation, it is a fact that investors disagree with him – especially those based in countries with strong legal systems and laws that protect consumers.
However, in the event that unpaid debts are not fully recovered by CoinFLEX before October 1, 2023, investors’ positions may be closed by the exchange without recourse, leaving them to fall into a predicament.
It remains to be seen whether the Seychelles authorities will consider this course of action appropriate or push the platform to seek another procedure before the restructuring is approved.
As CoinCu reported, CoinFLEX has suspended withdrawals since June 24 due to harsh market conditions and difficult business partners, despite insisting that it is not affiliated with any lending platform, especially Three Arrows Capital.
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