Futures crypto exchange CoinFlex opened the partial withdrawal limit for users up to 10% of their account balance while keeping flexUSD stablecoin out of the list.
While the crypto market crash was taking down many crypto platforms one by one, CoinFlex followed the approach taken by other critical crypto platforms and suspended withdrawals.
However, the firm has taken this move after individual accounts fell into negative equity during the downfall in the crypto that was affecting its balances.
“We will be making 10% of user balances available for withdrawal with the exception of flexUSD, which cannot be withdrawn until further notice,” CoinFlex’s co-founders Sudhu Arumugam and Mark Lamb stated in a blog post on Thursday.
CoinFlex will lock the remaining 90% of user funds into their accounts.
Recently, CoinFlex launched arbitration by aiming for an $84 million debt recovery belonging to a “large individual customer”, which is a part of its broader revival strategy.
Also Read: CoinFLEX Launches Legal Action Against Roger Ver to Recover $84M
The firm unveiled that currently, it is holding up 26 million FlEX tokens in its treasury, which is worth over $7 million at the current market price. It has raised concerns about market volatility in FLEX’s price if it restores trading activity. This will ultimately surge adversary effects on the collateral positions of users.
“We are continuing to work on all avenues to resolve this situation. This ranges from possible further withdrawals and potential new equity investors to the acquisition of CoinFLEX and combinations in between. We continue to work closely with the significant creditor group,” the firm’s co-founders added in the blog.
