Coinflex plans to give 65% of the company to creditors as a restructuring proposal

Cryptocurrency exchange CoinFlex has announced a restructuring proposal following user feedback on its platform’s liquidity issues.

According to the proposal presented by CoinFlex in a blog post on Wednesday – approved by the vote and the court – the creditors will own 65% of the company, while the team members will have 15% of the shares classified as employee shares. Alternative plan. According to the platform, the Series B investors will remain shareholders in the reorganized company if the plan is approved.

CoinFlex CEO Mark Lamb and Chief Revenue Officer Sudu Arumugam said: “As with any reorganization, unfortunately, the majority of shareholders will lose out.” “This situation is no different; all of the company’s regular and Series A shareholders, including us, are losing their shares.

He added that the platform will offer the recovery token RvUSD, equity and USD Coin (USDC) to lenders instead of FLEX Coin. The SmartBCH Alliance will also use Bitcoin Cash (BCH) to “exchange sBCH Tokens held by DeFi SmartBCH users on a 1:1 basis,” according to the proposal, taking responsibility for the SmartBCH Bridge.

“SmartBCH Alliance will take over as the lender. [CoinFlex] The amount of BCH to spend to fulfill these obligations. The co-operative will be treated in the same manner as other creditors without any change in position.

CoinFlex plans to hold a community vote on the proposed restructuring process on September 25, assuming 75% of creditors vote. The company will then submit the plan to the Seychelles courts for final approval along with a vote count.

“If everything is in order, we expect this process to take up to six weeks; however, this is only an estimate,” Lamb and Arumugam said.

Related: CoinFLEX announces staff reductions as part of measures to reduce costs by up to 60%

The exchange suspended withdrawals in June after a “big customer” owed CoinFlex tens of millions of dollars, causing liquidity issues. Lamb named BCH backer Roger Ver as this individual, but he denied the exchange’s claims.