CoinFLEX resumes withdrawals, limiting users to 10%

Since stopping user withdrawals three weeks ago, CoinFLEX has announced plans to recover up to $84 million in funds due.

Cryptocurrency exchange CoinFLEX is partially reopening user withdrawals, prompting cautious optimism that the company was gradually recovering from liquidity constraints triggered by a high-profile client default.

Starting at 5 a.m. UTC on Friday, all CoinFLEX users will be able to withdraw up to 10% of their funds, the company said. All existing withdrawal requests will be canceled and returned to their respective accounts, giving users the option to initiate new requests in accordance with the 10% limit.

The remaining 90% of users' balances will be considered "blocked funds", i.e. funds that appear on their balance but cannot be withdrawn, exchanged, or used as collateral.

The new guidelines apply to all assets except flexUSD, an interest-bearing stablecoin, which “cannot be withdrawn until further notice,” the company said.

Roger Ver owes CoinFLEX $47 million USDC. We have a written contract with him requiring him to personally guarantee any negative balance in his CoinFLEX account and to top up his margin regularly. He has been in default of this agreement and we have served notice of default.

CoinFLEX halted withdrawals on June 23 after a counterparty allegedly failed to meet a $47 million margin call. Cryptocurrency entrepreneur and Bitcoin Cash (BCH) promoter Roger Ver was later named as a counterparty, although he denied owing the company any money.

"Not only am I indebted to this counterparty, but this counterparty owes me a substantial amount of money, and I am currently requesting the return of my funds", Ver t...