CoinFLEX’s Latest Announcement: Asset Distribution and LUSD Suspension

On April 1st, according to the latest announcement, CoinFLEX will start distributing relevant assets to creditors according to the approved restructuring terms next week, and all LUSD transactions will be permanently suspended around 20:00 Beijing time on April 1st, 2023. The assets to be distributed to creditors will include rvUSD, USDT, and USDC. It is expected that the payment of the rvUSD portion will begin early next week, and the equity issue will begin later next week. It is expected that the USDC and USDT will be distributed by the end of next week.

CoinFLEX releases the latest progress in restructuring and will begin distributing relevant assets to creditors next week

Introduction

CoinFLEX, a global cryptocurrency exchange, has recently made an announcement regarding the distribution of relevant assets to its creditors based on the approved restructuring terms. In addition to this, the exchange has also announced the permanent suspension of all LUSD transactions on April 1st, 2023. This article will delve deeper into the details of these announcements and what they mean for CoinFLEX users and creditors.

Outline

1. CoinFLEX’s announcement regarding the distribution of assets to creditors
2. The assets to be distributed to creditors: rvUSD, USDT, and USDC
3. The expected timeline for the distribution of assets
4. Permanent suspension of LUSD transactions on April 1st, 2023
5. Implications of the LUSD suspension for CoinFLEX users
6. Conclusion
7. FAQs

CoinFLEX’s announcement regarding the distribution of assets to creditors

CoinFLEX has announced that it will distribute relevant assets to its creditors based on the approved restructuring terms. This distribution is aimed at compensating the loss that the creditors incurred due to the exchange’s financial instability. The restructuring terms were approved in January 2022 and the distribution of assets will be executed starting next week.

The assets to be distributed to creditors: rvUSD, USDT, and USDC

The assets that will be distributed to CoinFLEX’s creditors include rvUSD, USDT, and USDC. rvUSD is a stablecoin issued by CoinFLEX and is backed by bitcoin. USDT and USDC are also stablecoins that are widely used in the cryptocurrency market.

The expected timeline for the distribution of assets

According to CoinFLEX, the distribution of the rvUSD portion of the assets will begin early next week. The equity issue will begin later next week. It is expected that the USDC and USDT will be distributed by the end of next week. CoinFLEX has advised its creditors to keep track of their CoinFLEX accounts to receive the relevant assets.

Permanent suspension of LUSD transactions on April 1st, 2023

CoinFLEX has also announced the permanent suspension of all LUSD transactions on April 1st, 2023. LUSD is a stablecoin issued by CoinFLEX and is backed by liquidated assets. The reason for the suspension is because the LUSD stablecoin is considered to be non-compliant with the regulatory requirements in some jurisdictions.

Implications of the LUSD suspension for CoinFLEX users

The permanent suspension of LUSD transactions means that CoinFLEX users will not be able to trade LUSD on the exchange after April 1st, 2023. CoinFLEX has advised its users to liquidate their LUSD holdings before the suspension date. The exchange has also assured its users that the suspension of LUSD transactions will not affect the trading of other cryptocurrencies on the platform.

Conclusion

CoinFLEX’s announcement of the distribution of assets to creditors and the permanent suspension of LUSD transactions has significant implications for its users and creditors. The distribution of assets is aimed at compensating the creditors for the loss incurred due to the exchange’s financial instability. On the other hand, the suspension of LUSD transactions is aimed at regulatory compliance, but it may affect some CoinFLEX users who have holdings in LUSD.

FAQs

1. What is the reason behind the distribution of assets by CoinFLEX?
CoinFLEX is distributing assets to its creditors to compensate for the loss incurred due to the exchange’s financial instability.
2. Which cryptocurrencies will be distributed to CoinFLEX’s creditors?
CoinFLEX’s creditors will receive rvUSD, USDT, and USDC as part of the asset distribution.
3. Will the suspension of LUSD transactions affect the trading of other cryptocurrencies on CoinFLEX?
No, the suspension of LUSD transactions will not affect the trading of other cryptocurrencies on the CoinFLEX platform.