Crypto trading platform CoinFLEX is following in the footsteps of Celsius in halting withdrawals. CoinFLEX revealed the move on Thursday, stating that due to extreme market conditions and the financial risk to the client.
Save for withdrawals and trading of its in-house FLEX tokens, all other activities, including trade and deposits, will continue running smoothly on CoinFLEX. The Seychelles-headquartered crypto platform announced in January that it had reached $1,000 billion in transactions. Efforts by AFP to get the current value of their assets before the freeze were futile.
Withdrawal Freeze continue to Rise among Crypto Platforms
Several crypto entities decided to suspend withdrawals following the recent wild streak that has hit the industry. Before CoinFLEX, Celsius also discontinued its withdrawals from its site on June 13, while Babel Finance followed suit on June 17. Finblox and Voyager Digital have also halted withdrawals from their platforms.
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Besides the extreme market conditions, CoinFLEX also claimed continued uncertainty involving a counterparty for closing withdrawals. Following the controversy surrounding Three Arrows Capital, CoinFLEX’s CEO Mark Lamb saw it fit to clarify that the counterparty was not the site or any other lending firm.
Three Arrows Capital is currently undergoing acute solvency problems. The firm over-leveraged crypto positions. Three Arrows found itself among the biggest institutional casualties in the crypto industry when the positions got liquidated following the collapsing market prices.
CoinFLEX’s freeze of withdrawals will last until after its next update. The update will go live on June 27, and withdrawals will open on June 30. Before this official announcement, CoinFLEX withdrawal was already experiencing issues as per users complaint’s in the platform’s Telegram channel. As an assurance to the traders, CEO Mark Lamb revealed that 99.X% of his money is in CoinFLEX, and he had withdrawn none of it.
Bitcoin Price Rises despite CoinFLEX’s Withdrawal Freeze
The news of crypto trading platform CoinFLEX halting withdrawals does not seem to impact the industry significantly. Bitcoin’s price has increased by 3.4% over the last 24 hours. However, there is rising fear that more platforms may start halting withdrawals.
