During the market’s recent volatility, a number of companies have experienced liquidity issues because of the sudden downturn in prices across Bitcoin and all other cryptocurrencies.
The latest company to halt withdrawals is CoinFLEX, a derivatives exchange that also offers financial services and crypto yield was founded in 2019 and backed by investors like Roger Ver, Mike Komaransky, Polychain Capital, Digital Currency Group, and others.
The company announced on June 23rd, 2022 that the platform is pausing all withdrawals for all assets due to “extreme market conditions.” Their blog post also mentions that there is “continued uncertainty involving a counterparty.”
While the platform has stated that it is expected to resume full operation in a timely manner, it is still unclear what the extent of the issues are. CoinFLEX confirmed that their “counterparty” is not 3 Arrows Capital or a lending firm.
Their next update is scheduled for June 27th, 2022 and has a set deadline to resume withdrawals by June 30th, 2022.