In early vote, CoinFlex creditors largely support the restructuring plan

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Last Updated on September 26, 2022 by Bitfinsider

In the early hours of voting on the proposals, the majority of Coinflex‘s creditors supported the cryptocurrency exchange’s restructuring plans. CoinFlex is situated in the Seychelles.

According to a poll on Snapshot, after nearly five hours of voting today, tokens representing more than 99% of creditor assets had approved the suggested restructuring arrangement. Tuesday is the deadline for voting.

CoinFlex was established in 2019 initially as a platform for physically delivered futures, but has since shifted its emphasis to create a cryptocurrency repo market.

After a counterparty failed to fulfill a margin call, the exchange stopped allowing client withdrawals in June. Roger Ver, a well-known cryptocurrency investor, was named by CoinFlex as this counterparty; however, Ver refuted this and claimed to be the one who is owed the money. After cutting costs by firing employees, CoinFlex eventually filed for restructuring in a Seychelles court in August.

According to the restructuring proposals, employees will receive 15% of the company’s stock, which will vest over time, while creditors will hold 65% of CoinFlex’s equity. CoinFlex’s Series A investors will lose all they invested, but its Series B investors will keep their shares.

The plan from CoinFlex also includes a deal with the BCH alliance under which the alliance would take control of the SmartBCH Bridge. If approved, it would mean that “BCH on the SmartBCH network will be 1:1 redeemable for BCH via the SmartBCH Alliance.” according to CoinFlex.

The collapse of the Terra ecosystem in May, which destroyed $40 billion in investor value in a matter of days, left a number of cryptocurrency companies suffering, including the exchange. At the beginning of July, the hedge fund Three Arrows Capital declared bankruptcy, and a few weeks later, the cryptocurrency lender Celsius.

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