As a consequence of current market conditions and issues involving a counterparty, CoinFLEX, a futures crypto exchange, has halted all its withdrawals on the platforms.
On 23 June 2022, Thursday, Mark Lamb, the CEO of CoinFLEX made the announcement through a Blogspot.
The blog noted, as mentioned above, that the platform is pausing all its withdrawals due to extreme market conditions experienced by the crypto market and the uncertainty that came with it. It also mentioned that the firm expects to resume “withdrawals in a better position as soon as possible.”
In addition, CoinFLEX is suspending all perpetual and spot trading of its FLEX coin in the short term. Meanwhile, the company said a new update is to be released on June 27, while withdrawals are estimated to resume on June 30.
Furthermore, in the short term, CoinFLEX is suspending its FLEX coin’s perpetual and spot trading.
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The CEO also made it clear that the counterparty involved is neither any lending platform nor crypto hedge fund Three Arrows Capital (3AC), however, Lamb didn’t mention the name also.
Apparently, the company has also invested funds worth $200 million in LUNA, which got wasted after the melodramatic collapse of Terra. The company’s executives are looking at several options, for instance, asset sale or a bailout while 3AC is struck among difficulties.
However, CoinFLEX CEO chose to stay positive in these rather tough times and believes soon things will get back to normal, “We are confident that this situation can be repaired fully with a restoration of all functionality, namely withdrawals,” Lamb said.
Extreme Market Conditions Led To This
CoinFLEX becomes the latest crypto company to halt withdrawals following the footsteps of other crypto lending giants such as Celsius, which announced the pause of withdrawals on its platform providing “extreme market conditions,” as the reason.
Babel Finance, another digital asset lender, also halted withdrawals and redemptions on its platform due to liquidity issues.
The update came shortly after the company revealed its total exposure to 3AC, valued at over $650 million in BTC and USDC.
On the other hand, Voyager Digital, a cryptocurrency broker reduced its daily limit to $10,000 from $25,000, performing over a 50% reduction. The update was shortly followed by the company revealing its total exposure to 3AC, valued at more than $650 million in USDC and BTC.