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Crypto Exchange CoinFlex Proposes Restructuring Plan

Troubled cryptocurrency exchange CoinFLEX has released a restructuring plan more than a month after filing it with a Seychelles court. It was one of several companies to undergo a reorganization following the crypto crash earlier this year.

At latest blog entry, CoinFLEX creditors will own 65% of the company, while all existing common and Series A shareholders will lose their shares. The CoinFLEX team will be allocated 15% in the form of an employee stock option plan that will vest over time, the statement said. The motive is to help the team get “back on track” and grow the business.

On the other hand, Series B investors remain shareholders in the reorganized company and receive incentives for future equity. A vote on the new proposal is scheduled for next week and will require approval from 75% of the creditors worth CoinFLEX’s CFV token.

restructuring plan

If the proposal is accepted, the exchange will submit the term sheet and supporting documents to the Seychelles courts to approve the reorganization. If not, stakeholders must change the terms and then return to all creditors for approval in a second round of voting.

If the reorganization plan gets the green light from creditors, satisfies the judge, and the terms are met, CoinFlex estimates the process will take up to six weeks.

“We are fully aware that this has been a traumatic experience for all of our depositors and stakeholders. We hope that with a successful reorganization we will return to the path of growth and become a successful exchange. It won’t be overnight or easy, but with the support of our new army of shareholders – you guys – we have every chance of making it happen.”

The proposal also mentions that the BCH Alliance will take responsibility for the SmartBCH Bridge and will use their own BCH to convert the sBCH tokens delivered by the DeFi SmartBCH users are held to exchange on a 1:1 basis. Meanwhile, creditors will receive Recovery Value USD (rvUSD), Equity and USDC-stablecoin.

The autumn

In late June, CoinFLEX announced that it would halt withdrawals from its platform due to “extreme market conditions” and “continued uncertainty regarding a counterparty.” Platform co-founder Mark Lamb later identified BCH proponent Roger Ver as a counterparty, accusing him of defaulting on a $47 million loan.

However, ver fire the allegations and instead hit out at CoinFLEX, claiming the investment platform owes him money. The amount was later revised to $84 million, with the exchange entering arbitration with Ver in a Hong Kong court.

Source: Crypto News Deutsch

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