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News

CoinFlex Partially Repays Debt To SmartBCH Alliance Limited: BCH Rises 106%

June 27, 2023 - Around 2 mins mins to read

Key Points:

  • CoinFlex partially repays debt to SmartBCH Alliance Limited.
  • SPV takes over 1:1 peg maintenance between sBCH and BCH from CoinFlex.
Coinflex, a UK-based cryptocurrency exchange, has partially repaid its debt to SmartBCH Alliance Limited. The exchange has been responsible for the BCH to sBCH cross-chain bridge, but it was discontinued following its bankruptcy. BCH has witnessed a 106% increase in the last seven days, marking the highest increase among mainstream currencies.
CoinFlex Partially Repays Debt To SmartBCH Alliance Limited: BCH Rises 106%

As per the latest update, SmartBCH Alliance Limited has received 4,281,291.42 rvUSD, 651,928.02 USDC, and 6,834.015 BCH from Coinflex. Out of the 651,928.02 USDC received, 521,542.4 USDC (80%) has been swapped into 3,924.84 BCH and transferred to pp9xzxg4re07pdtkm5v2zdwjx2c6z6qnj5jnu6f6d9. The remaining 130,385.62 USDC has been reserved for legal and other operating expenses for the SPV. The SPV owns 10,758.86 BCH so far.

The SPV is opening an account in OPNX and will gradually swap rvUSD into BCH in the exchange. Coinflex has also burned 33,365.67 sBCH back to the old bridge address 0x8c4F85ec71C966e45A6F4291f5271f8114a7Ba15. Now, there are 67,756.766 sBCH in circulation on smartBCH.

According to the restructuring terms approved by Seychelles Courts, the SPV shall be entitled to common equity and one board seat of Coinflex. However, they haven’t received these assets yet. Coinflex is still undergoing the legal process for restructuring, and the community will be updated once there is any significant progress.

The SPV has entered into an agreement with Coinflex, in which it will take over the responsibilities of maintaining the 1:1 peg between sBCH and BCH using all the assets owned by the SPV. However, there is a risk of failing to maintain such peg due to the discrepancy between the assets owned and the circulating sBCH. Nevertheless, by receiving the assets, the peg of sBCH:BCH is safer than not having received it. Prior to this, the peg has been maintained well by the community.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Thana

Coincu News

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CoinFLEX

coinflex token

CoinFlex's creditors

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Author

Thana

I am a news editor at Coincu, where I produce daily editorial packages and manage the knowledge and review article sections. Before journalism, I earned a Bachelor's degree in Global Logistics and Supply Chain Management from Northampton University and studied news journalism at Press Association Training.
News

CoinFlex Partially Repays Debt To SmartBCH Alliance Limited: BCH Rises 106%

Key Points:

  • CoinFlex partially repays debt to SmartBCH Alliance Limited.
  • SPV takes over 1:1 peg maintenance between sBCH and BCH from CoinFlex.
Coinflex, a UK-based cryptocurrency exchange, has partially repaid its debt to SmartBCH Alliance Limited. The exchange has been responsible for the BCH to sBCH cross-chain bridge, but it was discontinued following its bankruptcy. BCH has witnessed a 106% increase in the last seven days, marking the highest increase among mainstream currencies.
CoinFlex Partially Repays Debt To SmartBCH Alliance Limited: BCH Rises 106%

As per the latest update, SmartBCH Alliance Limited has received 4,281,291.42 rvUSD, 651,928.02 USDC, and 6,834.015 BCH from Coinflex. Out of the 651,928.02 USDC received, 521,542.4 USDC (80%) has been swapped into 3,924.84 BCH and transferred to pp9xzxg4re07pdtkm5v2zdwjx2c6z6qnj5jnu6f6d9. The remaining 130,385.62 USDC has been reserved for legal and other operating expenses for the SPV. The SPV owns 10,758.86 BCH so far.

The SPV is opening an account in OPNX and will gradually swap rvUSD into BCH in the exchange. Coinflex has also burned 33,365.67 sBCH back to the old bridge address 0x8c4F85ec71C966e45A6F4291f5271f8114a7Ba15. Now, there are 67,756.766 sBCH in circulation on smartBCH.

According to the restructuring terms approved by Seychelles Courts, the SPV shall be entitled to common equity and one board seat of Coinflex. However, they haven’t received these assets yet. Coinflex is still undergoing the legal process for restructuring, and the community will be updated once there is any significant progress.

The SPV has entered into an agreement with Coinflex, in which it will take over the responsibilities of maintaining the 1:1 peg between sBCH and BCH using all the assets owned by the SPV. However, there is a risk of failing to maintain such peg due to the discrepancy between the assets owned and the circulating sBCH. Nevertheless, by receiving the assets, the peg of sBCH:BCH is safer than not having received it. Prior to this, the peg has been maintained well by the community.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Thana

Coincu News

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