Beleaguered cryptocurrency exchange CoinFLEX said on Tuesday the Seychelles courts approved its restructuring plan, suggesting that creditors would get 65% of the company, while Series A investors would lose their equity stakes.
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The exchange said in a blog post the courts are expected to publish the written order "during the course of this week." With the move, trading of locked assets (such as LUSD and LETH) has been suspended.
"We are looking to implement the restructuring quickly and will not restart Locked Assets trading until 24hrs after the publication of the court order to allow all locked asset holders to be sufficiently informed," CoinFLEX added.
Shortly after the news broke, the exchange's native token FLEX surged over 20% up to $2, according to data from CoinGecko.
CoinFLEX suspended withdrawals last summer, citing "extreme market conditions." The exchange reported a "significant deficit of about $84 million," adding that the incident occurred after its "large individual customer" violated terms of a written manual margin arrangement. Later, CoinFLEX CEO, Mark Lamb, said that the long-time proponent of the Bitcoin Cash ecosystem, Roger Ver, was owing CoinFLEX as little as $47 million in USDC.
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