Dear CoinFLEX Community,
From 8 AM UTC on Sunday, September 25, 2022 to 4 AM UTC on Tuesday, September 27, 2022, 168 CoinFLEX creditors participated in CoinFLEX’s first governance vote on the company’s Restructuring Proposal.
The vote was successful, with 98.63% voting in favor of the proposal. CoinFLEX will submit this vote to the Seychelles court, which will review and hopefully approve the above results, completing the final stage of our restructuring process.
As of 5 PM UTC September 27, 2022, CoinFLEX creditors are also now able to trade their locked balances on the exchange.
If you have locked USDC, locked flexUSD, or locked assets of any kind, they are represented as “LUSDC,” “LBTC,” and “LETH,” etc. All markets will be trading against the same type of asset. For example, LUSDC will trade against USDC and LBCH against BCH. This will facilitate those who wish to sell out of their creditor claims against CoinFLEX and those who want to buy those claims. Sellers can then freely withdraw the USDC (or crypto) for which they sold their locked balances. Buyers will be treated the same as any other CoinFLEX creditor at the time restructuring concludes. A model to help users calculate the potential value of LUSDC and CoinFLEX Composite assets can be found here.
When restructuring concludes, the markets for locked balances will close, and holdings of LUSDC and other locked balances will be converted into the CoinFLEX Composite, including USDC, rvUSD, and CoinFLEX equity.
If you undertake trading of “locked balances,” you acknowledge that
- Such “locked balances” are a creditor claim amount against CoinFLEX;
- CoinFLEX is undertaking a reorganization process pursuant to Seychelles law; and
- Such “locked balances” are expected to convert into a composite of assets (USDC, rvUSD, and CoinFLEX equity).
See CoinFLEX Restructuring Proposal and Next Steps for further details about the Seychelles reorganization process. All trading of “locked balances” on the CoinFLEX platform will otherwise be subject to the CoinFLEX Terms of Service.
Update [Wednesday 28 September 2022]:
Please note on 28 September 2022, CoinFLEX will:
1) Convert all unlocked flexUSD on CoinFLEX into USDC.
Unlocked flexUSD refers to the 10% of user balances that have been made available for withdrawal. Users who hold unlocked flexUSD and have not yet withdrawn will see their balances convert into the corresponding amount in USDC.
Example: User account has 100 existing flexUSD. 90 are locked flexUSD and 10 remain unlocked flexUSD.
In the case that the user has not yet withdrawn 10% of the 100 existing flexUSD, the 10 unlocked flexUSD will automatically convert into 10 USDC.
2) Convert all locked flexUSD balances into LUSD.
Example: Taking the above, the user’s new balance will reflect accordingly as 90 LUSD and 10 USDC.
3) Unlock new flexUSD deposits.
This means that new flexUSD deposits can be redeemed for 90% LUSD and 10% USDC.
4) Unlock all locked FLEX.
Published on: September 27, 2022