Crypto Derivatives Exchange CoinFLEX Suspend Withdrawals, Citing “Extreme Market Conditions”

Popular cryptocurrency derivatives exchange CoinFLEX has joined a growing list of crypto-related platforms that have suspended withdrawals.  In an official announcement on Thursday, the exchange noted that the decision was “due to extreme market conditions last week & continued uncertainty involving a counterparty.”

CoinFLEX Halts Withdrawals

“Today we are announcing that we are pausing all withdrawals. We will also be halting all FLEX Coin trading in perps and spot in the short term,” the exchange said.

CoinFLEX is a crypto yield platform that provides institutional and retail investors an easily accessible platform to earn and trade crypto. The exchange touts itself as the world’s first physically delivered futures exchange and has nearly $200 million in total value locked (TVL).

The company noted that its counterparty is not Three Arrows Capital or any lending firm and that its team is working to resume withdrawals on June 30, 2022. CoinFLEX noted that the expected date can change as it is only estimated based on its current understanding of the matter.

Meanwhile, the crypto space has been in a state of chaos in recent times, with the global crypto market dropping below $1 trillion from its November peak of  $3 trillion.

As a result of the market meltdown, crypto hedge fund Three Arrows Capital is facing potential insolvency after being liquidated by its lenders. For the same reason, crypto lenders Celsius and Babel Finance suspended withdrawals and redemptions on their platforms.

Crypto Exchanges Cut Jobs Due to Bear Market

Meanwhile, other crypto firms are taking several other steps like reducing their workforce to cope with the bearish market. 

Earlier this month, crypto lending platform BlockFi announced it will be reducing its workforce by 20%. At the same time, mainstream crypto exchange Coinbase said it will lay off 18% of its employees, representing about 1,100 individuals.

CryptoCom, Gemini, Rain Financial, BitOasis, and Bybit have also laid off a significant number of their employees.