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Restructuring proposal from CoinFLEX: Devoting 65% of Shares to Creditors

WikiBit 2022-09-23 15:46

Abstract:On Wednesday, CoinFLEX unveiled a planned restructure and the subsequent, immediate actions the cryptocurrency exchange will take. In a term sheet that the business published, it was declared that creditors would possess 65% of the CoinFLEX. .

In a settlement agreement that the firm released, it was indicated that creditors would control 65% of the CoinFLEX. 15% of the outstanding shares, which also will accrue over time into an employee share option program, will be allocated to the company's staff (ESOP). CoinFLEX additionally announced that Series B shareholders will remain in possession of shares of the reorganized business.

The Wikibit app shows that CoinFLEX has no license to operate.

It says in a letter to the CoinFLEX community:

“As with any reorganization, unfortunately, most shareholders get wiped out. This situation is no different; with all existing Ordinary and Series A shareholders of the Company losing their equity stakes, including us.”

The proposal, as stated by the Seychelles-based cryptocurrency exchange, also incorporates an agreement with the BCH alliance. The collaboration would then be in charge of managing the SmartBCH Bridge. If the buyout is authorized, as per CoinFLEX, “BCH on the SmartBCH system would be 1:1 convertible for BCH via the SmartBCH Alliance.”

CoinFLEX incorporated that the proposal currently substitutes USDC for FLEX Coin, irrespective of the fact that in previous past the corporation has specified recovery tokens will be in the form of rvUSD, equity, and FLEX Coin.

The Ad Hoc Group and Series B shareholders have endorsed the utilization of the company's FLEX Coin stocks to expand the company or retain them on the financial statements, positively impacting all shareholders.

In a statement posted on its website, CoinFLEX explained the legislation's terms and declared that important stakeholders had satisfactorily finished deliberations.

The proposal will be submitted for a democratic referendum on Snapshot at the following phase.

Following the stoppage of transactions in June due a situation that the exchange characterized “extreme market conditions,” amid allegations that investor Roger Ver had defaulted on a $47 million loan agreement, the revamping plans were announced to investors via email in August. Ver refuted those charges.

Withdrawals on CoinFLEX did, however, partially resume in July.

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