CoinFLEX Halts Withdrawals, Citing ‘Uncertainty’ Around Unnamed Counterparty

The CoinFLEX team is scheduled to make its next update on June 27, and it currently expects withdrawals to resume on June 30

article-image

CoinFLEX | Source: Shutterstock

share

key takeaways

  • CoinFLEX is halting withdrawals until at least June 30, the exchange said
  • The unnamed counterparty is not Three Arrows Capital, Celsius or BlockFi, the announcement said

CoinFLEX has suspended all withdrawals in the latest instance of an exchange going offline amid turbulent trading. 

Customers can continue to trade and deposit, but no funds can be taken off the platform, the company said in a statement Thursday. 

“Due to extreme market conditions last week & continued uncertainty involving a counterparty, today we are announcing that we are pausing all withdrawals,” the exchange wrote. “We fully expect to resume withdrawals in a better position as soon as possible.” 

The exchange also halted trading of all of its in-house FLEX tokens. 

The unnamed counterparty is not Three Arrows Capital, which is currently facing potential insolvency, CoinFLEX said. The firm’s CEO also clarified that the counterparty is not a lending firm, such as Celsius or BlockFi. 

The next update is scheduled to come on June 27, and withdrawals are expected to resume on June 30, the exchange said.

CoinFLEX Telegram members had already been reporting issues with withdrawals for the past few days.

“99.X% of my money is in CoinFLEX right now,” Mark Lamb, CEO of CoinFlex, wrote in the firm’s Telegram channel Thursday. “None of which has been withdrawn.”

The situation highlights ongoing concerns around liquidity as the sell-off in crypto markets continue and companies across the industry start to feel the pressure. 

“There is no easy solution, but more robust liquidity is a good starting place for crypto institutions under stress,” said Timo Lehes, co-founder of blockchain infrastructure company Swarms. 

A spokesperson for CoinFLEX did not immediately return a request for comment.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research

article-image

Hunter Horsley says Solana is one of this cycle’s breakout successes that he thinks clients will want to access

article-image

SOL has climbed more than 2,000% in the past two years

article-image

MicroStrategy founder Michael Saylor alluded to Marathon’s CEO during a X Spaces on Tuesday

article-image

Crypto’s calls are equally as juiced as puts, creating a “smile” in the volatility surface

article-image

Turns out that owning the end-user via a crypto wallet is quite a prosperous business

article-image

The announcement followed growing speculation that Gensler would announce his exit before Trump takes office next year