Does Blockchain(dot)com Really Owe $4 Million To CoinFLEX?

• CoinFLEX and Blockchain(dot)com reportedly signed an AMM+ Participation Agreement
• blockchain(dot)com has until March 7 to certify its return to the FLEX coins.

Nine Yards Chambers LLC, a Singapore-based law firm, alleged that Blockchain(dot)com failed to return $4.3 million in FLEX coins to one of its clients, the Coinflex cryptocurrency exchange. According to the law firm, Blockchain(dot)com’s deadline to confirm that it would return the FLEX coins to CoinFLEX was March 7 and March 21 was the deadline for the transaction to be finalised. The legal team has said that starting legal action is not prohibited, including but not limited to issuing a formal demand for payment known as a statutory demand.

In response, Blockchain(dot)com stated, “This is completely false.” 

This assertion is related to an allegedly signed AMM+ (automated market maker) Participation Agreement from April 12, 2022. This also happened to be the time when Bitcoin was struggling mightily at $40,000. 

The agreement’s very existence is, however, completely speculative. Blockchain(dot)com sources allege that CoinFLEX does not have evidence of any such arrangement and that the entirety of CoinFLEX’s claim has no merit at all.

The notification, issued February 24, states that Blockchain(dot)com has until March 7 to certify that it would return the FLEX coins, and it has until March 21 to transmit the money. Otherwise, the exchange will be subject to “the initiation of legal processes, including but not limited to” a formal demand for payment known as a statutory demand, according to CoinFLEX. 

According to the letter, Blockchain(dot)com would then have another 21 days to pay back the money, which is made up of four loans reportedly made between March and June of last year.

Blockchain(dot)com received 3 million tokens

Between March and June of last year, 3 million FLEX tokens were lent to Blockchain(dot)com, according to CoinFLEX. Again, the debt allegations are supported by an allegedly signed Automated Market Maker (AMM) Participation Agreement from April 12, 2022. 

Blockchain(dot)com stated that CoinFLEX’s claim was “totally without foundation and a work of fiction from an insolvent firm currently being sued by its clients for dissolution.” “We will soon begin collection efforts for services given by CoinFLEX to Blockchain.com that are now outstanding.”

The due date for Blockchain(dot)com’s confirmation of the refund is March 7, according to the official letter written by CoinFLEX. The $4.3 million worth of FLEX tokens must then be returned by Blockchain(dot)com by March 21. 

If Blockchain(dot)com declines to pay back the outstanding loans, CoinFLEX stated it will file a statutory demand against the company in court.

Adding to this fiasco, Blockchain(dot)com also made public the information that CoinFLEX is the party that is owed money by it for specific services but has not yet made payment. They further assert that they will bring a lawsuit for the same. 

Blockchain(dot)com is currently trying to sell off a portion of its assets in order to repair a $270 million accounting error. The company is in damage control mode.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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