CoinFLEX unveils plan to restructure business
The head of the exchange noted that CFV voting tokens will be distributed to all creditors
22.09.2022 - 13:15
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What’s new? Cryptocurrency derivatives platform CoinFLEX has developed a business restructuring plan in which it proposes to transfer 65% of the capital to creditors, and 15% to the team in the form of an employee stock option plan (ESOP). The company decided to keep the Series B funding investors as shareholders. CoinFLEX CEO Mark Lamb noted that CoinFLEX vote tokens (CFVs) will be distributed to all lenders. Voting on the proposal will be done on the Snapshot platform.
What else does the proposal say? Vote tokens will be accrued to blockchain holders and owners of wrapped Bitcoin Cash (sBCH) on the Smart Bitcoin Cash (SmartBCH) blockchain. The plan specifies:
“The effect of the agreement with the SmartBCH Alliance is that, subject to approval of CoinFLEX’s reorganization in the Seychelles, the SmartBCH Alliance will assume the responsibility of the SmartBCH Bridge and use its own BCH to exchange the sBCH Tokens held by the DeFi SmartBCH users on a 1:1 basis.”
If 75% of the users support the proposal, representatives of the company will submit the results of the vote along with the term sheet and supporting documents to the Seychelles court to approve the reorganization. Otherwise, the proposal will be reworked and then put to a vote again.
What is known about CoinFLEX? The platform was founded in 2019. There are 7 coins and 7 trading pairs available for trading on it. The exchange also has its own stablecoin flexUSD, pegged to the US dollar. As of September 22 at 13:10 UTC, the exchange's native FLEX token is trading at $0,199, down 10,8% in 24 hours, according to CoinGecko.
CoinFLEX suspended withdrawals in late June. At the time, Lamb said investor Roger Ver owed the platform $47 million in USDC stablecoins. The exchange later unveiled a recovery plan that would involve issuing new rvUSD tokens for a similar amount. However, on July 9, CoinFLEX appealed to the Hong Kong International Arbitration Center to recover $84 million from Ver, pointing to the initially incorrect estimate of damages.
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