CoinFLEX joins a list of other crypto platforms that have halted withdrawals citing extreme market conditions. Another exchange joins the bandwagon with Celsius, Finblox, Babel FInance, and Voyager Digital.
The exchange also reasoned an uncertainty involving a counterparty for pausing all withdrawals.
“Due to extreme market conditions last week & continued uncertainty involving a counterparty, today we are announcing that we are pausing all withdrawals. We fully expect to resume withdrawals in a better position as soon as possible. We will fully communicate with you as we find out more.”
CoinFLEX
CoinFLEX is working on remedy
According to the exchange’s blog, a specific date for the withdrawal resuming has been mentioned as June 30, 2022. As of now, it is clear that the withdrawals will be paused for a minimum of three days. This is because the next update according to the timeline in the blog is June 27, 2022.
“We will also be halting all FLEX Coin trading in perps and spot in the short term.”
To reduce the anxiety among its users, the exchange mentioned that the counterparty is not Three Arrows Capital or any other lending firm that includes Celsius and BlockFi. The previously mentioned firms have been going through financial turmoil for more than a week.
“We fully expect to resume withdrawals in a better position as soon as possible. We will fully communicate with you as we find out more.”
Three Arrows Capital suffered one of the biggest financial turmoil due to the crypto crash, liquidation of its crypto positions, and bear market. The hedge fund had also invested in Terra, which brought its investment to almost zero after the collapse of the entire Terra ecosystem.
The current market conditions are proving to be extremely difficult for most of the companies, as they seem to struggle to stay robust through the passing hailstorm.