The Seychelles courts have approved a plan that would give 65% of the company to creditors and 15% to employees as CoinFLEX is said to transition into the Open Exchange.
Crypto investment platform CoinFLEX has received approval for its restructuring plan from the courts in Seychelles, the company announced March 7 on its blog.
The courts are expected to publish the order the same week, the blog post added. Trading in locked assets has been halted until 24 hours after the publication of the court order on the restructuring to allow time for asset holders to be informed.
CoinFLEX halted withdrawals in June after incurring $47 million in losses when an account went negative without being liquidated. CoinFLEX began allowing users to withdraw 10% of their holdings in July and laid off employees to reduce company costs. Nonetheless, it announced a restructuring plan on Sept. 21.
Under the restructuring plan, creditors would receive 65% of the company, and its employees would receive 15%. Series B investors would remain shareholders, but Series A investors would lose their equity.
Also on March 7, reports emerged on Twitter that:
“OPNX will acquire all assets of CoinFLEX including people, tech, and tokens.”
The Open Exchange (OPNX) was set up by Three Arrows Capital founders Su Zhu and Kyle Davies and CoinFLEX founders Mark Lamb and Sudhu Arumugam. It claimed to be “the world’s first public marketplace for crypto claims trading and derivatives” when its website launched on Feb. 9.
Kyle, founder of 3AC, said that OPNX will acquire all assets of CoinFLEX including people, tech, and tokens and FLEX will be their main token. FLEX is used to pay fees and 20% of revenue is used to buy and burn FLEX. There are currently 100 million FLEX tokens in circulation, of… https://t.co/jIfl7iIrNs
— Wu Blockchain (@WuBlockchain) March 7, 2023
CoinFLEX said in a Jan. 16 blog post that it would be rebranded into the new exchange:
“CoinFLEX creditors/Series B will be the largest class of shareholders, and we are also discussing other benefits. Any funds raised will be used to grow the company and its equity value for shareholders, including the CoinFLEX creditors.”
Related: CoinFLEX attempts to hose down backlash over proposed new 3AC project
The Open Exchange reportedly trades bankruptcy claims and allows customers to use those claims as collateral on new loans. The tokenized claims will not be withdrawable.
