CoinFLEX, the trading platform that has blocked withdrawals since mid-2022, claims to have received court approval a proposal to restructure debt and transfer assets to OPNX exchange.
The Seychelles Court, which registers operations of cryptocurrency exchange CoinFLEX, has agreed to the platform’s debt restructuring plan. The court’s decision came eight months after CoinFLEX unexpectedly blocked user withdrawals because of the liquidity crisis of the crypto market at the time.
CoinFLEX claims the court’s written ruling will be announced as soon as this week. Within 24 hours of the court order, trading on CoinFLEX will be suspended to ensure all users are fully informed of the latest developments.
We are pleased to announce the successful approval of CoinFLEX’s restructuring by the Seychelles Courts.
Please read our full announcement here (https://t.co/VWHEYWwLey) and stay tuned for more information coming later this week.
— CoinFLEX (@CoinFLEXdotcom) March 7, 2023
CoinFLEX’s debt restructuring plan has been filed in court since September last year, according to which 65% of the exchange’s shares will be transferred to creditors, and 15% will be given to employees. All Series A investors in CoinFLEX will lose their stake, but Series B investors are still protected.
Notably, the two founders of CoinFLEX in January 2023 revealed that they would join forces with Kyle Davies and Zhu Su – the two founders of the Three Arrows Capital fund that also went bankrupt in mid-2022 – to create a foundation. new transaction named OPNX.
In addition to the normal spot and futures products, OPNX will allow users to mortgage assets on crypto companies and platforms that have collapsed in 2022 such as FTX, Genesis, Celsius, Voyager, BlockFi and even… Three Arrows Capital.
OPNX estimates the niche is worth up to $20 billion and is currently untapped. OPNX is said to have raised $ 25 million, but did not disclose the list of investors.
Kyle Davies recently revealed that OPNX will buy back all of CoinFLEX’s assets, including human resources, technology and tokens. CoinFLEX’s FLEX coin will become the official OPNX token, used to pay fees on the exchange, 20% of the revenue from FLEX will be used to buy back and burn FLEX tokens to create deflationary pressure, as well as have incentives for users. early use.
— Wu Blockchain (@WuBlockchain) March 7, 2023
OPNX leaves open the possibility of renaming the FLEX token in the future. The price of FLEX on the evening of March 7 had a 20% increase at times because of the news that CoinFLEX was approved for a restructuring plan.
In addition, Three Arrows Capital is considering suing Genesis/Grayscale, two companies of the Digital Currency Group that are accused of being at the center of the liquidity crisis when creating a synergistic effect through GBTC shares. On the morning of March 7, FTX exchange and Alameda Research fund filed a lawsuit against Grayscale and Digital Currency Group to ask for the right to exchange treasury shares back to their original assets.