CoinFLEX Reaches Debt Restructuring Agreement, Paving Way for 3AC OPNX Fund

CoinFLEX, the trading platform that has blocked withdrawals due to the fact mid-2022, says it has obtained court approval on a proposal to restructure debt and transfer assets to exchange OPNX.

CoinFLEX Reaches Debt Restructuring Agreement, Paving Way for 3AC OPNX Fund

The Seychelles court, which registers the operations of cryptocurrency exchange CoinFLEX, has accepted the platform’s debt restructuring strategy. The court determination came eight months immediately after CoinFLEX unexpectedly blocked consumer withdrawals due to the cryptocurrency market’s liquidity crunch at the time.

CoinFLEX says the written court ruling will be announced as early as this week. Within 24 hrs of the court purchase, trading on CoinFLEX will be suspended to make certain all end users are completely informed of the newest developments.

Since September final yr, CoinFLEX’s debt restructuring strategy has been filed in court, in accordance to which 65% of the exchange’s shares will be transferred to creditors and 15% to staff. All Series A traders in CoinFLEX will get rid of their stake, but Series B traders are nonetheless protected.

Notably, the two founders of CoinFLEX in January 2023 exposed that they would join forces with Kyle Davies and Zhu Su – the two founders of the Three Arrows Capital fund which also failed in mid-2022 – to produce a new transaction dubbed OPNX. .

In addition to standard spot and futures merchandise, OPNX will permit end users to home loan assets on crypto firms and platforms that collapsed in 2022 this kind of as FTX, Genesis, Celsius, Voyager, BlockFi, and even… Three Arrows Capital.

OPNX estimates the niche is well worth up to $twenty billion and is at present untapped. OPNX is stated to have raised $25 million, but has not disclosed the checklist of traders.

Kyle Davies just lately exposed that OPNX will invest in back all of CoinFLEX’s assets, such as human sources, technologies and tokens. CoinFLEX’s FLEX coin will grow to be the official OPNX token, utilised to shell out costs on the exchange, twenty% of the income from FLEX will be utilised to invest in back and burn up FLEX tokens to produce deflationary stress, as properly as owning incentives for end users. .

OPNX leaves open the choice to rename the FLEX token in the long term. The price tag of FLEX on the evening of March seven in some cases had a twenty% enhance due to the information that CoinFLEX has been accepted for a restructuring strategy.

FLEX price tag motion for the final seven days, screenshot by CoinMarketCap at 22:45 on 07/03/2023

In addition, Three Arrows Capital is thinking of suing Genesis/Grayscale, two firms in the Digital Currency Group accused of becoming at the heart of the liquidity crisis by generating a synergy result by GBTC shares. On the morning of March seven, the FTX exchange and the Alameda Research fund filed a lawsuit towards Grayscale and Digital Currency Group in search of the correct to convert their treasury shares back into their unique assets.

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