Nine Yards Chambers LLC, a law practice based in Singapore, has alleged that Blockchain.com, an experienced cryptocurrency corporation, has failed to reimburse $4.3 million in FLEX coins to one of its customers, the Coinflex cryptocurrency exchange.
The law firm claims that Blockchain.com have till March 7 to affirm that it will reimburse CoinFLEX the FLEX coins, and it has established a deadline of March 21 for the completion of the transaction.
Aside from that, the legal firm has noted that the beginning of judicial cases is not ruled out, and this includes, but is not limited to, a formal demand for payment referred to as a statutory demand.
“You have not repaid the 3,000,000 FLEX coins that have been due for a very long time, either because you refused to do so or because you just forgot to do so.”
According (1) to the law firm,
“if our client is forced to exercise its legal rights against you […] it will naturally look towards you for the greatest amount of interest and costs that are recoverable by law.”
On the other hand, Blockchain.com has cast doubt on the assertions made by the CoinFLEX exchange, arguing that there is no documentation or data stored on the blockchain to back the contention.
According to the statement made by Blockchain.com,
“CoinFLEX has not offered any evidence, proof, or on-chain data to verify their assertions.”
According to CoinFLEX, loans of three million FLEX tokens were provided to Blockchain.com between March and June of the previous year. The loan claims, as reported, are supposedly founded on an automated market maker (AMM) Participation Agreement that was purportedly agreed into on April 12, 2022.
According to the statement made by Blockchain.com,
“CoinFLEX’s allegation is utter without basis and a fiction story from a bankrupt company that its clients are now suing for dissolution. CoinFLEX owes Blockchain.com for services supplied that are now underpaid, and we will soon begin the collection process.”
The Future of the CoinFLEX and Blockchain.com Markets
On June 23, 2022, CoinFLEX temporarily halted the withdrawal of digital assets belonging to its customers in response to the cryptocurrency winter that had been occurring.
However, one week later, the corporation resumed providing withdrawal services and started restructuring. It is important to note that the corporation plans to raise around 84 million dollars to pay off its loans.
Currently, CoinFLEX can take satisfaction in having paid out more than $50 million in interest to consumers, having over $124 million in total value locked (TVL), and having a total trade volume of over $2.05 trillion.
On the other hand, Blockchain.com is having trouble keeping its finances afloat due to a hole that amounted to $270 million and was caused by cash lent to the failed Three Arrows Capital (3AC).
Their trials might continue even after finding a solution to their disagreements in court.
In addition, scores of organizations involved in the cryptocurrency have recently declared bankruptcy and are in the process of reorganizing to make their consumers whole again.