CoinFLEX Lays Off Staff To Cut Operating Costs By Up To 60%

Crypto exchange CoinFLEX has decided to lay off a significant number of employees in order to cut costs for the company by up to 60%.

According to the statement, CoinFLEX, one of the companies that are being negatively impacted by the current “liquidity crisis,” said it had parted “a significant number” of employees from various divisions and locations, in an effort to cut the overall costs by 50% to 60%.

The majority of the remaining members will focus on product and technology development and will consider scaling up staff as needed.

“The intention is to remain right-sized for any entity considering a potential acquisition of or partnership opportunity with CoinFLEX,” said the exchange.

On Saturday, CoinFLEX halted withdrawals after an unnamed party reportedly failed to meet a $47 million margin call. CEO Mark Lamb later took to Twitter to confirm rumors that the company had a written contract with Bitcoin Cash (BCH) proponent Roger Ver “obligating him to personally guarantee any negative equity on his CoinFLEX account and top up margin regularly.” Ver has denied the exchange’s claims.

Following the halting of withdrawals, CoinFLEX first declared that it intended to create a new currency called Recovery Value USD in order to address its lack of liquidity (rvUSD). The exchange announced on Friday that it still intended to proceed with the recovery plan, even if no tokens had yet been released as of the time of publication:

“We continue working with lawyers and the significant creditor group on the details around the distribution of the CoinFLEX Composite (inclusive of rvUSD, equity, and FLEX Coin) and expect to have numbers around this next week so that we can put this to a vote from all depositors as soon as possible thereafter.”

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