Exchange CoinFlex suspends withdrawals for “market conditions”2 min read
Cryptocurrency exchange CoinFlex announced this Thursday (23), the interruption of withdrawals for its customers due to “extreme market conditions”.
This decision generated distrust in some users and as a result, different people took advantage of Twitter to accuse the exchange of being a financial pyramid.
According to CoinFlex, the exchange will resume withdrawals as soon as possible and will update the information next Monday (27). However, users seem to have lost confidence in the company.
We have temporarily paused withdrawals on @CoinFLEXdotcom as a protective measure. We are working to resume withdrawals as soon as possible. Please find our announcement here with more details. Thank you for your support.https://t.co/4jqjLx1PVA— CoinFLEX (@CoinFLEXdotcom) June 24, 2022
CoinFlex and the cryptocurrency market
CoinFlex is a platform that functions as a cryptocurrency wallet or investment portfolio that provides users with passive earnings and an exchange for spot trading and margin trading.
The exchange also has two cryptocurrencies of its own, FlexCoin (FLEX) and Flex USD stablecoin (FLEXUS), which melted after withdrawals from the exchange were suspended.
CoinFlex’s announcement of pausing user withdrawals came shortly after Celsius Network and other exchanges took similar steps.
The risk to customer funds on exchanges
Lately, there has been a great concern from users about the risk that funds held on cryptocurrency exchanges suffer.
Coinbase CEO revealed in May that exchanges must keep clients’ assets in an account separate from their own assets, under US Securities and Exchange Commission (SEC) Rule 15c3-3.
This information has brought a great deal of discussion in the market on the subject, as well as creating speculation that some cryptocurrency exchanges do not comply with this rule. However, these claims have not been confirmed to date.
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