Last Updated on September 26, 2022 by Bitfinsider
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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