CoinFLEX reveals its restructuring plan. The digital currency exchange will transfer 65% of its equity to creditors, dividing 15% among the group, and said Series B investors will also remain shareholders.
In August, CoinFLEX announced the restructuring efforts to customers via email, after it suspended withdrawals in June. The suspension came over what the exchange called “extreme market conditions” amid accusations that investor Roger Ver had defaulted on a $47 million loan agreement, allegations that Ver denied. In July, withdrawals on this exchange partially resumed.
A cryptocurrency exchange situated in the Seychelles named CoinFLEX released a formal restructuring proposal and the company’s impending next moves on September 21.
65% of the company will be owned by creditors, as described in a term sheet the company provided. 15% of the company’s remaining shares will be allotted to the CoinFLEX team, and they will vest over time under an employee stock option plan (ESOP). Investors in the Series B round will continue to hold shares of the reorganized business.
CoinFLEX said that the proposal also includes an agreement with the BCH alliance that would see the alliance assume responsibility of the SmartBCH Bridge. If approved, CoinFLEX said the takeover would mean that “BCH on the SmartBCH network will be 1:1 redeemable for BCH via the SmartBCH Alliance.”
An announcement on the exchange’s website provided a breakdown of the proposal’s conditions. Major parties, according to CoinFLEX, reached an agreement during the course of their deliberations. The idea will then be put to a community vote, which CoinFLEX claimed will take place on Snapshot.
The dollar value of the locked balances shall be determined at the price in effect at 10:00 a.m. UTC on September 22, 2022.
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