The crypto derivatives exchange, CoinFLEX, has frozen user withdrawals on its platform. Amidst the crypto winter, this is yet another platform to discontinue account withdrawals.
The company’s CEO, Mark Lamb, explained that CoinFLEX was forced to freeze withdrawals “due to extreme market conditions last week & continued uncertainty involving a counterparty”. The withdrawals will be resumed as soon as the platform is in “a better position”.
Additionally, futures and spot trading for FLEX, the company’s native crypto, will also be put on hold. The FLEX coin was used to reduce trading fees on the exchange.
CoinFLEX emphasized that the counterparty in question is not a lending firm, nor is it the crypto hedge fund Three Arrows.
This month, amidst the collapsing market prices, Three Arrow’s over-leveraged crypto positions were liquidated. This forced the companies with exposure to Three Arrows to take similar action as CoinFLEX. The staking platform Finblox significantly reduced withdrawals on its platform. Meanwhile, the crypto lending platform Babel Finance has entirely paused withdrawals.
However, we’re yet to see which counterparty is involved in CoinFLEX’s troubles. Lamb added that the company is “confident that this situation can be repaired fully with a restoration of all functionality, namely withdrawals”.