CoinFLEX Claims Blockchain.com Owes 3M FLEX Coin Worth about $4.3M

Blockchain.com has, however, disputed the claims by the CoinFLEX exchange, citing that there are no documentations or on-chain data to support the argument.

A Singapore-based law firm, Nine Yards Chambers LLC, has claimed that Blockchain.com – a veteran crypto firm – has failed to repay $4.3 million in FLEX coins to one of its clients, the Coinflex cryptocurrency exchange. According to the law firm, Blockchain.com has until March 7 to confirm that it will repay CoinFLEX the FLEX coins and has set a deadline of March 21 for the transaction to be completed. Otherwise, the law firm has indicated that the commencement of legal proceedings is not ruled out, including but not limited to a formal demand for payment called a statutory demand.

“You have failed, refused, and/or neglected to repay the 3,000,000 FLEX coins that are long overdue to be repaid. If our client is compelled to enforce its legal rights against you […] it will naturally look towards you for the maximum amount of interest and costs that are recoverable at law,” the law firm noted.

However, Blockchain.com has disputed the claims by CoinFLEX exchange, citing that there are no documentations or on-chain data to support the argument.

“CoinFLEX has provided no evidence, documentation, or on-chain data to support their claims,” Blockchain.com stated.

According to CoinFLEX, Blockchain.com received 3 million FLEX tokens in loans between March and June last year. Reportedly, the loan claims are based on an automated market maker (AMM) Participation Agreement allegedly entered into on April 12, 2022.

“CoinFLEX’s claim is completely meritless and a work of fiction from an insolvent company currently being sued by its customers for dissolution,” Blockchain.com said. “CoinFLEX owes Blockchain.com for services rendered which remain unpaid at this time, and we will soon initiate collection.”

CoinFLEX and Blockchain.com Market Outlook

Following the 2022 cryptocurrency winter, CoinFLEX temporarily paused withdrawals of customers’ digital assets on June 23. However, the company reopened withdrawal services a week later and began restructuring. Notably, the company intends to raise approximately $84 million to offset its loans.

Currently, CoinFLEX takes pride in over $50 million in interest paid out to customers, over $124 million in total value locked (TVL), and a total trade volume of about $2.05 trillion.

Blockchain.com, on the other hand, is struggling to keep its financials afloat following a $270 million hole from cash lent to the bankrupt Three Arrows Capital (3AC). Their tribulations could move on before the two resolve their issues in court.

Moreover, dozens of crypto-related companies have gone bankrupt and have undertaken a restructuring plan to make their customers whole again.

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