CoinFLEX Halts Withdrawals, Citing ‘Uncertainty’ Around Unnamed Counterparty

CoinFLEX has suspended all withdrawals in the latest instance of an exchange going offline amid turbulent trading. 

Customers can continue to trade and deposit, but no funds can be taken off the platform, the company said in a statement Thursday. 

“Due to extreme market conditions last week & continued uncertainty involving a counterparty, today we are announcing that we are pausing all withdrawals,” the exchange wrote. “We fully expect to resume withdrawals in a better position as soon as possible.” 

The exchange also halted trading of all of its in-house FLEX tokens. 

The unnamed counterparty is not Three Arrows Capital, which is currently facing potential insolvency, CoinFLEX said. The firm’s CEO also clarified that the counterparty is not a lending firm, such as Celsius or BlockFi. 

The next update is scheduled to come on June 27, and withdrawals are expected to resume on June 30, the exchange said.

CoinFLEX Telegram members had already been reporting issues with withdrawals for the past few days.

“99.X% of my money is in CoinFLEX right now,” Mark Lamb, CEO of CoinFlex, wrote in the firm’s Telegram channel Thursday. “None of which has been withdrawn.”

The situation highlights ongoing concerns around liquidity as the sell-off in crypto markets continue and companies across the industry start to feel the pressure. 

“There is no easy solution, but more robust liquidity is a good starting place for crypto institutions under stress,” said Timo Lehes, co-founder of blockchain infrastructure company Swarms. 

A spokesperson for CoinFLEX did not immediately return a request for comment.

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