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CoinFLEX Becomes the most recent Crypto Exchange to Halt Withdrawals

Futures cryptocurrency exchange CoinFLEX has actually stopped briefly all withdrawals on the platform as an outcome of the existing severe market conditions and problems including a counterparty.

3AC Not the Cause of CoinFLEX’s Suspension

CoinFLEX CEO Mark Lamb revealed the news in an article on Thursday (June 23, 2022), which checks out:

” Due to severe market conditions recently & & ongoing unpredictability including a counterparty, today we are revealing that we are stopping briefly all withdrawals. We totally anticipate to resume withdrawals in a much better position as quickly as possible. We will totally interact with you as we discover more.”

In addition, CoinFLEX is suspending all continuous and area trading of its FLEX coin in the short-term. The business stated a brand-new upgrade is to be launched on June 27, while withdrawals are approximated to resume on June 30.

While the article does not call the counterparty included, Lamb clarified that the confidential entity is neither crypto hedge fund Three Arrows Capital (3AC) nor any financing platform.

Earlier in June, there were insolvency reports surrounding Three Arrows Capital. Quickly after, the Singapore-based hedge fund saw its long positions liquidated as cryptocurrency rates toppled.

The company likewise bought $200 million worth of LUNA, a financial investment that turned sour following the drop in the worth of Terra’s native token. In the middle of the difficulties surrounding 3AC, the business’s executives are thinking about a number of alternatives, such as possession sale or a bailout.

Meanwhile, CoinFLEX CEO is positive that things might return to typical, stating:

” We are positive that this scenario can be fixed totally with a repair of all performance, particularly withdrawals.”

Ripple Effect of the Crypto Bear Market

CoinFLEX is the current crypto business to stop withdrawals this June. Crypto loaning giant Celsius ended up being the very first to do so on June 13, likewise mentioning “severe market conditions.”

Another digital property lending institution Babel Finance likewise stopped briefly withdrawals and redemptions on its platform since of liquidity problems.

Cryptocurrency broker Voyager Digital, on the other hand, reduced its day-to-day withdrawal limitation from $25,000 to $10,000, indicating a more than 50% decrease. The upgrade came soon after the business exposed its overall direct exposure to 3AC, valued at over $650 million in BTC and USDC.

Following the statement, Voyager’s shares plunged 60%. The business’s subsidiary is likewise thinking about legal actions to take if Three Arrows Capital defaults in repaying its loan.

Staking platform Finblox, another crypto company with direct exposure to 3AC, likewise changed its withdrawal limitation to $1,500 monthly from $500 day-to-day and stopped briefly benefits circulation.

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