Another cryptocurrency platform has halted user withdrawals in response to the bear market.
Crypto derivatives exchange CoinFLEX today announced that it is closing account withdrawals on its platform, citing trouble with counterparties. “Due to the extreme market conditions last week and the continued uncertainty of a counterparty, today we are announcing that we are stopping all withdrawals,” CEO Mark Lamb said. Wrote in a company blog post today.
According to the statement, withdrawals will resume “as soon as possible” once the company is in “better condition”. However, no specific date was given.
In addition, all futures and spot trading for the company’s native cryptocurrency, Flex Coin, will be halted. The coin is used by CoinFLEX customers to reduce trading fees on the exchange, not unlike Binance’s BNB.
However, CoinFlex clarified that the troubled counterparty in question is Three Arrows Capital (also known as 3AC) not “or any lending firm” that would include BlockFi and Celsius.,The two firms are known to be in serious financial trouble, the latter of which could potentially lead to more infections in the crypto market.
“We are confident that this situation can be completely corrected with the restoration of all functionality, namely withdrawals,” Coinflex’s Lamb said today.
Three Arrows was one of the biggest institutional casualties in the crypto industry this month, as its more leveraged crypto positions were exhausted amid plunging market prices. The hedge fund was a major player in the digital asset space for years, Chief A $9 million funding round for the NEAR protocol just two months ago, and several others before that.
the company was also deep investment in terra,A former top 10 cryptocurrency that fell to zero following the collapse of its associated algorithmic stablecoin, TeraUSD (UST).
Firms exposed to Three Arrows were forced to take the same action as Coinflex did today. Finblox, a staking platform in which 3AC was invested, significantly Reduced The exit of its platform this month. Meanwhile, Asian crypto lending platform Babel Finance has stopped Its withdrawal in response to “risk events” as a whole.
One of the latest firms to feel the after-effects of 3AC’s bankruptcy is cryptocurrency broker Voyager Digital. firm’s stock fall 60% after disclosing its exposure in 3AC of $661 million on Wednesday. The company followed with 60% cut Up to your daily withdrawal limit on Thursday.
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