Coinflex Seeks Approval for Restructuring

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  • Coinflex has filed its restructuring plan with a Seychelles court
  • The plan involves seeking tens of millions in rvUSD purchases
  • Coinflex is in the hole for $84 million, which it says Roger Ver owes it

Coinflex has filed a restructuring plan in the Seychelles which it hopes will improve its perilous financial situation. The exchange and lending platform has been battling against a financial black hole ever since it was revealed that Roger Ver not paying his bills had left them with an $84 million sized gap in their accounts, and the company has been trying to stay afloat ever since. The restructuring plan, which seeks to issue depositors recovery value USD (rvUSD) tokens, equity and locked FLEX coins on a pro rata basis among other sticking plasters, needs to be approved by creditors before it can be ratified.

Ver and Coinflex at Loggerheads Over $84 Million

The Coinflex story has been well documented and intensely followed, not least because it is the actions of one man, and not a very popular one in the Bitcoin space, that have led to the current situation. Ver and Coinflex are at loggerheads as to whether Ver owes the exchange the $84 million it says he does, with the matter to be decided in court after Coinflex filed a suit against him (or at least threatened to).

In the meantime however the exchange needs to get operational again, which is why it has submitted its restructuring plan. This is the plan that was outlined in June and asks users to buy the rvUSD coin and treat it like a fixed interest savings account, with investors promised a 20% interest rate on their investment, paid out daily in rvUSD tokens.

rvUSD Plan Seeking Creditor Approval

47 million rvUSD tokens have been issued, each one costing 1 USDC, with the idea being that these coins, plus the interest, will be swapped out for USDC tokens at the appropriate time.

Coinflex CEO Mark Lamb sent an email to customers yesterday, seeking approval from them, as well as a court, regarding the plans for rvUSD and a FLEX token payout to those who buy up the new token. Lamb is still seeking a new group of shareholders to push the company forward, but this will be difficult to do while the Ver case is still hanging over it.