Just-In: CoinFLEX Allows Users To Withdraw Funds, But There’s A Catch

Crypto exchange CoinFLEX on Thursday said it will allow users to withdraw 10% of funds from their accounts from July 15, except flexUSD stablecoin. The remaining 90% of funds will remain locked in accounts until further notice.

CoinFLEX Starts Withdrawals With 10% Limit

Crypto exchange CoinFLEX in an official blog post on July 14 announced restarting withdrawals with a 10% limit this week and continues to work on recovery plans.

“The remaining 90% of your balance will be considered locked funds. Locked funds will appear in your balance, but they will not be available for withdrawals, trades, nor be counted as collateral on CoinFLEX.”

The crypto firm suspended withdrawals last month after some accounts went into negative equity as a result of the crypto market crash.

Currently, CoinFLEX is working on an arbitration solution to recover $84 million in debt owed by a large individual customer, prominent crypto investor Roger Ver.

On July 15 at 5 am UTC, all current pending withdrawals will be cancelled, and all funds will be returned to the respective accounts. The trading and system access will be shut before re-enabling withdrawals. The process is expected to take a few hours before starting trading and withdrawals.

All smartBCH deposits on CoinFLEX will have 90% of the deposit amount locked. However, users can use the 10% amount on the platform and withdraw it as BCH.

Moreover, FlexUSD will not be available for withdrawal but will be redeemable on the platform. The firm has urged customers to deposit flexUSD held off platform back on as soon as possible.

Also, the FLEX Coin on the platform will be locked and will no longer count as collateral.

CoinFLEX Previous Attempts to Continue Withdrawals

CoinFLEX had earlier promised to restart withdrawals by June 30. However, CEO Mark Lamb delayed the plan as a result of disputes related to Roger Ver.

CoinFLEX also launched a new token rvUSD as part of the recovery plan by promising 20% annual returns on it. However, the tokenization solution of rvUSD has been labeled as a Ponzi scheme by many in the crypto community.

Despite continued efforts to start withdrawals, the exchange was under scrutiny after bankruptcy filing by Three Arrows and Voyager Digital.

Today, Celsius too filed for Chapter 11 bankruptcy. Now, customers are looking for CEL short squeeze as they are unlikely to recover funds.