Cryptocurrency exchange CoinFLEX has revealed its restructuring proposal, where creditors will own 65% of the company. The exchange noted in a blog post though that "most shareholders get wiped out." As a result, all existing ordinary and Series A shareholders of the exchange will lose their equity stakes.
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"As with any reorganization, unfortunately, most shareholders get wiped out. This situation is no different."
CoinFLEX added that the Series B shareholders will continue to be shareholders. The CoinFLEX team will allocate 15% in the form of an employee share option plan (ESOP) which will vest over time.
However, the proposal still needs to be approved. If 75% of creditors by value do not support the proposal, the exchange plans to present it to the Seychelles Courts to approve the reorganization.
In June, CoinFLEX suspended the withdrawal of user funds due to "extreme market conditions" and "uncertainty of a counterparty." Subsequently, CoinFLEX CEO, Mark Lamb, said in a tweet post that Bitcoin.com founder, Roger Ver, owes the exchange $47 million. Later, the exchange laid off 60% to maintain a "successful business."
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