Another crypto futures exchange has temporarily halted withdrawals owing to volatility in the digital assets market.
Coinflex Chief Executive Mark Lamb said “extreme market conditions” for the action.
The Seychelles-based organization said that the decision was motivated by “continued uncertainty involving a counterparty.”
The Chief Executive remarked that the counterparty in question was not Three Arrows Capital, the crypto-oriented hedge fund recently reported being considering a sale of assets or a bailout by another organization.
“We fully expect to resume withdrawals in a better position as soon as possible,” Lamb said,
As per the statement, withdrawals will be resumed “as soon as possible” once the company is in a “better position”. However, no specific date was given.
In addition, all futures and spot trading for the company’s FLEX coin, will be put on hold. The coin is used by CoinFLEX customers to lessen trading fees on the exchange, like Binance’s BNB.
However, CoinFLEX clarified that the troubled counterparty in question is not Three Arrows Capital or “any lending firm” which would comprise Celsium and BlockFi- two firms known to be in dire straits financially, which the latter potentially cause further contagion in the crypto market.
Firms with vulnerability to Three Arrows were pressurized to take alike action as CoinFlex did. Finblox, a staking platform in which 3AC was invested, reduced its platform withdrawals this month. For now, the Asian crypto lending platform Babel Finance has paused its withdrawals in response to “risk events”. Bitcoin is also battling with liquidity issues.