Crypto exchange CoinFLEX files for restructuring after halting withdrawals in June

Crypto futures exchange CoinFLEX has filed for restructuring in Seychelles as part of its plans to improve its financial situation.

Having applied to the Seychelles Supreme Court for reorganization and restructuring, CoinFLEX will now seek approval from creditors for its restructuring plans.

On Tuesday, CoinFLEX sent an email to its creditors stating that the exchange is looking to implement the proposals outlined last monthwhich includes issuing depositors with recovery tokens, equity and locked FLEX coins.

CoinFLEX suspended withdrawals in June amid turmoil in the crypto markets, when an individual’s account went into negative equity.

The firm said it was seeking to recover $84 million from a “large individual customer”, identified by CoinFLEX CEO Mark Lamb as prominent investor Roger Vera claim which Ver denied.

CoinFLEX subsequently laid off a “significant number” of its employees in a cost-cutting and restructuring effort. Remaining employees would be mostly focused on product and technology, CoinFLEX said.