CoinFLEX may not be able to let customers withdraw money again as originally planned, says CEO Mark Lamb. He highlighted that the company needs more time and it’s unlikely that withdrawals will be re-enabled as previously thought. Lamb revealed that CoinFLEX is in talks with several large funds to buy the $47 million in debt.
CoinFLEX joins a list of companies that have been severely hit by the crypto market crash that has seen billions of dollars being wiped off. Bitcoin has lost more than 50% of its value, while Ethereum is down 70% and struggles to stay afloat above the crucial $1,000 level. CoinFLEX paused withdrawals last week because of extreme market conditions. The company said that an individual investor Roger Ver, a.k.a Bitcoin Jesus, owed around $47 million. But Ver denies owing CoinFLEX any money, let alone the $47 million.
However, the crypto trading platform alleged that Ver’s account went into negative equity. CoinFLEX would have liquidated the investor’s position but Ver had a particular agreement wherein this wasn’t applicable. As such, the company is issuing a token called Recovery Value USD (rvUSD), and attracting investors with a 20% interest rate for holding the virtual currency. Lamb explained that the ability to pay that interest rate would come from recoupling the funds from Ver. And there’s also a financial charge that Ver has to pay. The executive shared that he doesn’t really know what will happen if the investor doesn’t repay or if he does repay. He said CoinFLEX’s focus is to raise the funds.
Lamb expressed confidence that the recovery would happen one way or the other.