The exchange CoinFlex rolls out $47 million token recovery plan in order to resume the withdrawal issues after joining the list of digital asset platforms which halted withdrawals due to market uncertainty so let’s read more today in our latest cryptocurrency news.
The company unveiled a recovery plan which involves the creation of a new token. The annoucnement reads that CoinFLEX rolls out $47M token recovery plan with the token Recovery Value and the exchange noted that it was in talks with large buyers who have significant interest in the terms offered. In the rvUSD whitepaper, the company noted that the issuance price for the new token will be 1 USDC and that it aims to release a total of 47 million of these tokens which will be the same as 47 million ISDC. The whitepaper revealed that the issuance is available to investors outside of the US and the minimum subscription amount is set at 100,000 USDC which.
The company said investors will receive a 20% annual rate on the new token accrued and the paid daily via rvUSD. The reports show that hte problems stemmed from an issue involving a counterparty. The company noted that the counterparty was a high-net-worth individual that owes the exchange after his account turned negative because of the recent market crash. The company said that it usually auto-liquidates accounts that run low on equity at prices before the zero equity price but the individual involved had a no-liquidation recourse account and their position cannot be terminated. The exchange added:
“In this case, the Individual had a nonliquidation recourse account, a condition that means they will not be liquidated in exchange for personally guaranteeing their account equity.”
CoinFLEX noted that a client is a high-integrity person that has a large portfolio and huge stakes in a few private unicorn companies. The company also plans to re-enable withdrawals in a few days depending on one whether it receives funds from the token issuance and they hope to restore the platform to full functionality if it raises the entire sum.
As recently reported, Not mentioning CoinFLEX by name, Roger Ver denied the claims that he owed USDC to the platform regarding the $47M debt. Not mentioning CoinFLEX by name, he said he hadn’t defaulted on a debt to a counterparty and alleged the company owed him a huge sum of money.
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