Case summary
What happened
CoinfloorEX was spun out and relaunched as CoinFLEX in early 2019. The exchange later added a centrally traded repo market and launched flexUSD, an interest-bearing stablecoin whose backing was deployed into that market. CoinFLEX suspended withdrawals on 23 June 2022, citing extreme market conditions and uncertainty involving a counterparty, then allowed limited withdrawals in July. Liquidity Technologies applied for restructuring in Seychelles and its scheme of arrangement was approved in March 2023. Customer recoveries have involved partial withdrawals, scheme asset allocations and equity claims through a dedicated creditor portal, while related recovery litigation and administration remain ongoing.
Customer result
Customer outcome
Claims ongoing
The scheme approval and creditor portal show an active recovery process, but the reviewed sources do not establish completed distributions for every creditor or a final percentage recovery. The ten-percent withdrawal event is recorded as the beginning of customer access, not final repayment.
- Estimated recovery
- No final universal recovery rate established. Customers received limited withdrawal access before the court-approved scheme provided for further asset and equity allocations.
- Repayment started
- 2022-07-15
- Repayment completed
- —
- Confidence
- High
Asset treatment
Terms risk
Varies by product
The product mix and scheme structure support a product-dependent classification. This record does not assume that every customer held the same legal claim or received the same recovery instrument.
- Affected product
- CoinFLEX exchange balances, flexUSD, locked balances and lending products
- Confidence
- Medium
CoinFLEX combined ordinary exchange balances, locked balances, flexUSD and repo-market products. The restructuring treated creditor claims and asset allocations through a court-approved scheme rather than establishing one uniform ownership treatment for every product and account type.
Source: Liquidity Technologies Ltd v Roger Keith Ver judgment summary
Known unknowns
Uncertainty
The February 2019 launch date uses the first day of the month because the relaunch source identifies only the month. The scheme was approved, but the reviewed sources do not establish a final universal recovery percentage or a completed end to all creditor administration and litigation.
Chronology
Historical record
CoinfloorEX relaunches as CoinFLEX
CoinfloorEX was spun out from Coinfloor Group and relaunched as CoinFLEX, a physically delivered crypto futures exchange.
The source identifies February 2019 but not an exact day; 1 February is a sortable approximation.
CoinFLEX launches flexUSD
CoinFLEX launched flexUSD, which deployed underlying USDC into the exchange repo market and distributed interest to holders.
Date follows the public launch announcement.
CoinFLEX suspends withdrawals
CoinFLEX halted withdrawals, citing extreme market conditions and uncertainty involving a counterparty.
Normal withdrawal access did not resume on the initial timetable.
CoinFLEX permits limited withdrawals
Customers were allowed to withdraw up to ten percent of balances while most assets remained locked and flexUSD was excluded.
Partial access was not completed repayment or normal withdrawal restoration.
Liquidity Technologies applies for restructuring
The CoinFLEX operating company applied to the Seychelles Supreme Court for a scheme of arrangement to reorganize creditor claims.
The application date appears in later court materials; the 17 August 2022 Seychelles judgment records the proposed haircut, rvUSD, equity and FLEX creditor treatment while preserving that creditor approval and final court approval were still prospective at that stage.
Seychelles court approves CoinFLEX scheme
The court approved the scheme, enabling creditor asset and equity allocations and the subsequent claims process.
Approval completed the court stage, not all distributions, recoveries or litigation.
Source record
Evidence dossier
Filter by claim, reliability, source type, and whether evidence is linked to a specific event.
customer outcome
2 sourcesCoinFLEX creditor portal
CoinFLEX creditor portal
Portal records the post-approval creditor claim process.
CoinFLEX resumes withdrawals with ten-percent limit
Cointelegraph · 2022-07-15
Contemporaneous report on limited withdrawal access and exclusion of flexUSD.
Entity
1 sourcesCoinFLEX launches centrally traded repo market
CoinFLEX / Business Wire · 2020-06-29
Company release describing the exchange, founders and early-2019 launch.
Event
8 sourcesCoinFLEX plan receives court approval
The Block · 2023-03-07
Reports approval of the Seychelles scheme.
CoinFLEX launches the first interest-bearing stablecoin
The Block / CoinFLEX sponsored · 2020-11-17
Launch announcement describing flexUSD repo-market lending and interest payments.
CoinFLEX podcast: repo market, flexUSD and yield
CoinFLEX / Apple Podcasts · 2020-11-27
First-party discussion covering flexUSD, repo-market yield and borrowing.
Ex-parte Liquidity Technologies Ltd v Saint Bitts LLC
Supreme Court of Seychelles / SeyLII · 2022-11-15
Court judgment records the June 2022 freeze and restructuring dispute.
CoinFLEX files for restructuring in Seychelles court
The Block · 2022-08-09
Reports that withdrawals were suspended on 23 June 2022 amid counterparty uncertainty.
Liquidity Technologies Ltd v Roger Keith Ver judgment summary
High Court of Hong Kong / Jus Mundi · 2026-04-02
Later judgment records the 28 July 2022 scheme application and restructuring rationale.
CoinFLEX files for Seychelles restructuring
The Block · 2022-08-09
Contemporaneous report confirming the court restructuring process.
In the matter of Liquidity Technologies Ltd — reorganisation application
Supreme Court of Seychelles / SeyLII · 2022-08-17
Primary court judgment records the proposed creditor treatment at the application stage: creditor-balance haircuts, dollarisation, pro-rata rvUSD rights tied to recoveries from the Roger Ver claim, pro-rata CoinFLEX equity rights and FLEX distributions, with 75% creditor approval and later final court approval still required. This source does not establish that the proposal was finally approved or that any creditor ultimately received a particular recovery percentage.
launch date
1 sourcesCoinfloorEX announces spin-off and CoinFLEX relaunch
CoinfloorEX / PR Newswire · 2019-01-07
Company release announcing the February 2019 CoinFLEX relaunch.
url history
1 sourcesCoinFLEX website archive captures
Internet Archive
Preserves historical exchange and yield-product pages.
No evidence records match the current filters.
Comparative records