Crypto exchange CoinFLEX is the latest to feel the heat of the ongoing so-called crypto winter. It has downsized a significant number of team members across all departments to cut the platform’s operating costs.
CoinFLEX said this was part of measures to reduce the company’s costs by 50% to 60%. It highlighted that the remaining team members will see product and technology, and the company will consider scaling as volume comes back. CoinFLEX’s official statement said the company intends to remain right-sized for any entity considered as a potential acquisition of or partnership opportunity.
The platform had halted withdrawals on Saturday after an unnamed party failed to meet a $47 million margin call. Mark Lamb, CoinFLEX CEO, tweeted that the company had a written contract with Bitcoin Cash (BCH) proponent Roger Ver obligating him to personally guarantee any negative equity on his CoinFLEX account and top up margin regularly. Lamb said Roger Ver has been in default of this agreement and thus, the platform served him with a notice of default. But Roger Ver has brushed off the crypto exchange’s claims.
The crypto exchange is working with lawyers and the significant creditor group on the details around the distribution of the CoinFLEX Composite. It expects to have numbers around this week. The platform will put it to a vote from all depositors as soon as possible thereafter.
Many users expressed concerns about CoinFLEX’s liquidity despite it partially reopening user withdrawals. The crypto exchange has a shortfall of as high as $84 million – CoinFLEX has commenced arbitration procedures in Hong Kong.
