Mark Lamb express his doubt saying withdrawals unlikely to resume on Thursday
Crypto exchange CoinFlex is “unlikely” to resume withdrawals on Thursday, June 30 as it had originally hoped, according to its CEO Mark Lamb, as the company continues to search for buyers of its $47 million bad debt. It needs more time was needed before the exchange can reopen its platform for user withdrawals.
While speaking to CNBC on Wednesday, Lamb stated that more time was needed before it could reopen the platform for withdrawals, stating:
“We will need more time. And it’s unlikely that withdrawals will be re-enabled tomorrow.”
The crypto exchange had been banking on Recovery Value USD (rvUSD) launched on Tuesday, June 28. The token offering was created in an effort to sell off its bad debt after one of its accounts went into negative equity.
On Tuesday, the company said it hoped withdrawals could restart as previously planned for Thursday, June 30, but acknowledged it would be subject to the token issuance being fully subscribed.
The company has not given any updates as to how many tokens have been subscribed till date, but Lamb claimed on Wednesday that CoinFlex is in talks with several large funds to buy up the $47 million debt.
In a separate talk to MarketWatch, Lamb said it has been making “significant progress” on its token sale amongst distressed debt funds, existing customers, and investors, adding that tens of millions of dollars in “soft commitments” have appeared.
The crypto investment platform ceased user withdrawals on Thursday, June 23 for “extreme market conditions” and “uncertainty around a certain counterparty,” which was later discovered to be the result of a long-time customer of CoinFlex’s account that went into negative equity.
Days later, CoinFlex CEO Mark Lamb openly blamed “Bitcoin Jesus” Roger Ver on Twitter, claiming that Ver owes the company $47 million USDC after permitting his account to go into negative equity.
Lamb continued their Twitter argument stating the “debt is 100% related to his account,” adding that his company “categorically denies that we have any debts owing to him.”
CoinFlex’s current woes are just another example of a growing number of crypto investment firms and trading platforms facing liquidity issues amid an ongoing crypto bear market.
Crypto lending platform Celsius Network is staring down possible bankruptchy, whilst crypto hedge fund Three Arrows Capital has just been served a notice of default by Voyager Digital. It has also allegedly been ordered to liquidate by a court in the British Virgin Islands.
