Cryptocurrency derivatives platform CoinFLEX has suspended user withdrawals due to “extreme market conditions” and “counterparty uncertainty.” This was announced by the head of the company, Mark Lamb.

We have temporarily suspended withdrawals @CoinFLEXdotcom as a preventive measure. We are working to restart withdrawals as soon as possible. Please find our announcement with more details here. Thank you for your support.https://t.co/4jqjLx1PVA

— CoinFLEX (@CoinFLEXdotcom) 24 June 2022

Lamb stressed that the counterparty in question was not the Three Arrows Capital (3AC) hedge fund or “any lender.”

The latter includes BlockFi and Celsius. The former are reportedly in trouble due to 3AC’s debt and have already liquidated at least some of their positions. The latter is on the verge of bankruptcy due to insufficient liquidity to pay customers income.

CoinFLEX has also temporarily suspended trading of its own FLEX Coin token and perpetual swap contracts on the spot market.

Lamb said the company plans to resume withdrawals when it is “in a better position.” CoinFLEX assumes that they will be able to restore all the functionality of the platform on June 30.

Previously, Voyager Digital lowered the daily withdrawal limit to $10,000. The crypto broker had trouble repaying its 3AC loan – the company warned it could send a default notice to the hedge fund if the fund didn’t clear the debt.

Kyle Davis, co-founder of Three Arrows Capital Recall, said the hedge fund is considering selling some of the assets to bail it out.

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