Crypto Derivatives Platform CoinFLEX to Conduct a Token Sale to Resume Withdrawal of Client Funds

Cryptocurrency derivatives platform CoinFLEX has announced it plans to a launch the Recovery Value USD (rvUSD) token to pay off the debt of a “wealthy” private client and resume the withdrawal of user funds.

According to the whitepaper published by the company, the rvUSD is a token issued by Liquidity Technologies Ltd. (“CoinFLEX”) and is related to the outstanding debt of a certain high net worth individual to CoinFLEX.

The platform suspended the withdrawal of user funds due to “extreme market conditions” and “counterparty uncertainty” on June 24. Then the head of the company, Mark Lamb, emphasized the latter is not a Three Arrows Capital (3AC) hedge fund or “any lending firm.”

On June 27, Lamb said the company was having trouble because of a “longtime” client who was given a loan on unique terms. There is no liquidation price for his position. In return, he provides liquidity to the platform. However, against the backdrop of the crisis, his position became unprofitable.