CoinFlex CEO Says Exchange Unlikely To Start Withdrawals Since Thursday As Originally Planned

On Wednesday, Mark Lamb, the CEO of CoinFlex, a crypto exchange, and popularly known as the “home of crypto yield” informed that the withdrawals will not start from Thursday, as per the original plan.

Lamb in a statement said that it’s not likely that the withdrawals will start from Thursday and they need more time.

Lamb also added that CoinFlex however is in discussion with various large funds who have shown interest in purchasing the $47 million in debt whose owner is alleged to be Roger Ver.

CoinFlex is also among the crypto entities facing the cold wind rush of the coldest crypto winter ever recorded, resulting in the loss of millions of dollars. Flagship currencies, Bitcoin and Ethereum also have experienced a steep drop in their prices and currently is about 70% from their all-time peak last November, meanwhile, the top altcoin even lost the support of $1000 at one point, however, it rebounded quickly. Currently, Ethereum is 75% away from its ATH.

Last week, citing “extreme market conditions” the crypto exchange halted withdrawals for its customers. It also informed that an investor owed them around $47 million. CoinFlex however initially did not reveal the name of the customer. However, on Tuesday disclosed that “Bitcoin Jesus” Roger Ver is the investor.

On the other hand, Ver, denying all the allegations, said that he owes CoinFlex no money whatsoever.

Meanwhile, CoinFlex is making the claim that Ver’s account reached “negative equity.” Usually in this situation, the exchange would liquidate an investor’s position. But the exchange said this would not happen because there was a particular agreement with Ver.

The company is issuing a token dubbed Recovery Value USD or rvUSD in order to raise the $47 million lost from CoinFlex’s balance sheet and allure customers with a 20% interest rate for holding the digital asset. Further, Lamb said recovering the funds from Ver along with the “financing charge” imposed on him would provide the ability to pay that interest rate.

The CEO clarified that they have no clue if Ver will repay or not as their focus currently is on collecting the funds. Lamb says that he is confident that the recovery will happen in one way or another.

ALSO READ: Coinbase Initiates Solana Staking Rewards, Offers Higher Returns Compared To Ethereum

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing