CoinFLEX crypto exchange to halt withdrawals

CoinFLEX crypto exchange has halted all withdrawals on the platform following the present harsh market conditions and difficulties involving a counterparty.

On June 23, 2022, CoinFLEX CEO Mark Lamb announced news in a blog post. The post says,

“Due to extreme market conditions last week & continued uncertainty involving a counterparty, today we are announcing that we are pausing all withdrawals. We fully expect to resume withdrawals in a better position as soon as possible. We will fully communicate with you as we find out more.”

Furthermore, CoinFLEX is temporarily stopping all permanent and spot trading of their FLEX coin.

Meanwhile, the business stated that a new update will be deployed on June 27, with withdrawals expected to begin on June 30.

While the blog post does not identify the counterparty, Lamb stressed that the anonymous business is neither Three Arrows Capital (3AC) nor any loan platform.

Three Arrows Capital was rumored to be bankrupt earlier in June. As bitcoin prices fell, the Singapore-based hedge fund's long positions were liquidated.

The business also purchased $200 million in LUNA, an investment that turned sour after the value of Terra's native coin fell.

In the midst of 3AC's problems, officials are evaluating a variety of options, including asset sales or a bailout.

Meanwhile, the CEO of CoinFLEX is optimistic that everything will return to normal, saying:

"We are certain that this situation can be entirely fixed by restoring all functionality, specifically withdrawals."