(Bloomberg) -- Cryptocurrency exchange CoinFlex won’t resume withdrawals Thursday as it had planned as it continues to raise funds to make up for the shortfall of $47 million triggered by a client’s default.
In an effort to resume withdrawals, CoinFlex issued a new token that will offer a 20% annual return. CoinFlex Chief Executive Officer Mark Lamb declined to share how much money has been raised.
CoinFlex is aiming to reopen withdrawals “as soon as possible, upon a successful raise,” Lamb said in a message to Bloomberg News, without providing a specific date. “One distressed debt fund has committed and we’re talking to several others. Our confidence has grown since Monday, as the industry of traditional finance buyers for these products has reached out in full force.”
CoinFlex paused withdrawals on June 23 after a counterparty, which it later named as longtime crypto investor Roger Ver, experienced liquidity issues and failed to repay $47 million of stablecoin in a margin call.
Ver, an investor in CoinFlex who earned the nickname “Bitcoin Jesus,” denied the claim, saying he does not owe money to CoinFlex. Their dispute played out on social media, the latest in a series of mini-crises that have rocked crypto markets in recent weeks.
Founded in 2019, CoinFlex is a smaller crypto exchange focusing on derivatives trading, with less than $200 million in total value locked, according to its website.
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