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CoinFLEX Reveals Restructuring Proposal
The digital currency exchange will turn over 65% of its equity to creditors, vest 15% to the team, and said Series B investors also will remain shareholders.
Muskaan T.
2:08 22nd Sep, 2022
Markets

CoinFLEX, a Seychelles-based crypto exchange, announced an official restructuring proposal and what immediate next steps the company will take.

Creditors, defined in a term sheet the company released, will own 65% of the company. The CoinFLEX team will be allocated 15% of remaining company shares, to vest over time in an employee share option program (ESOP). Series B investors, in turn, will also remain shareholders in the restructured company.

CoinFLEX said that the proposal also includes an agreement with the BCH alliance that would see the alliance assume responsibility of the SmartBCH Bridge. If approved, CoinFLEX said the takeover would mean that “BCH on the SmartBCH network will be 1:1 redeemable for BCH via the SmartBCH Alliance.”

Although in the past, CoinFLEX indicated recovery tokens would come in the form of rvUSD, equity, and FLEX Coin, the exchange explained that for now the proposal offers USDC instead of FLEX Coin. CoinFLEX opted to use its FLEX Coin holdings “to grow the business or keep them on the balance sheet, benefiting all shareholders,” a decision with which it said both Series B investors and the Ad Hoc Group agreed.

The terms of the proposal were broken down in an announcement on the exchange’s site. CoinFLEX said major stakeholders had come to an agreement over the course of their negotiations. Next, the proposal will go before a community vote CoinFLEX said will be held on Snapshot.



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