CoinFlex halted all withdrawals citing extreme market conditions and continued uncertainty involving a counterparty

Cryptocurrency exchange CoinFLEX is the latest name to block withdrawals for reasons related to a third party but claims it is not Three Arrows Capital.

CoinFLEX exchange blocked withdrawals, asserting not “because of 3AC”

In the announcement posted on the morning of June 24, this exchange with a 24-hour volume of $ 2.1 billion was written.

CoinFLEX said that the exchange will continue to update the situation on June 27 and expect to withdraw money on June 30. As such, CoinFLEX is the next platform to experience “liquidity difficulties” since the crypto market’s deep correction in mid-June, sending BTC and ETH to lows not seen since December 2020.

The list of major organizations confirmed to have problems includes:

  • Celsius lending platform: affected by stETH devaluation, has blocked withdrawals;
  • Three Arrows Capital (3AC) investment fund: affected by the market, insolvent, not responding to creditors’ requests, declared ready to sell off assets;
  • Finblox investment platform: influenced by 3AC, imposing withdrawal limit;
  • Babel Finance lending platform: affected by 3AC, blocking withdrawals;
  • DeFiance Capital investment fund: rumored to be influenced by 3AC;
  • BlockFi lending platform: liquidated 3AC’s collateral, claimed to be unaffected but borrowed 250 million USDC from FTX;
  • Voyager Digital investment app: influenced by 3AC, claims 3AC owes itself more than $662 million and has to borrow $485 million from Alameda to ensure liquidity, has imposed withdrawal limits for users.

Before the chain of “domino effect” above, many people fear that the crisis will spread further as more and more projects admit they are linked to Three Arrows Capital. According to some allegations, the fund’s leaders received investments from many other institutions as well as fund management for crypto projects and used this money to make transactions to “remove losses” later. The collapse of LUNA-UST in May. However, when the crypto market continued to decline in June, the investment amount of Three Arrows Capital also “evaporated” and they continuously kept silent when being tracked by investors. collect money.

The reaction of crypto “giants” is also different. The CEO of FTX exchange, billionaire Sam Bankman-Fried, vowed to “rescue” affected projects, as shown by lending money to BlockFi and Voyager.  Meanwhile, Binance CEO Changpeng Zhao June 23 shared an article saying that there are many reasons for the failure of a project, but not all projects are worth rescuing.

The wealth of crypto billionaires have also fallen deeply after two months and June of the violent correction of the crypto market.

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