Cryptocurrency exchange CoinFLEX has revealed its restructuring proposal, where creditors will own 65% of the company. The exchange noted in a blog post though that «most shareholders get wiped out.» As a result, all existing ordinary and Series A shareholders of the exchange will lose their equity stakes.
«As with any reorganization, unfortunately, most shareholders get wiped out. This situation is no different.»
CoinFLEX added that the Series B shareholders will continue to be shareholders. The CoinFLEX team will allocate 15% in the form of an employee share option plan (ESOP) which will vest over time.
However, the proposal still needs to be approved. If 75% of creditors by value do not support the proposal, the exchange plans to present it to the Seychelles Courts to approve the reorganization.
CoinFLEX Layoffs 60% of Staff Amid Legal Battle With Roger Ver
In June, CoinFLEX suspended the withdrawal of user funds due to «extreme market conditions» and «uncertainty of a counterparty.» Subsequently, CoinFLEX CEO, Mark Lamb, said in a tweet post that Bitcoin.com founder, Roger Ver, owes the exchange $47 million. Later, the exchange laid off 60% to maintain a «successful business.»