- CoinFLEX, a crypto exchange platform, is dismissing its employees
- The step is taken in between a legal action with Bitcoin Jesus.
According to a blog post, the exchange platform has revealed that it will be dismissing a number of employees globally in order to minimize the upraised costs.
“We regrettably had to eliminate a number of employees from our team over all departments and territories. The step of eliminating staff will eventually minimize our base cost by early 50-60%. The core of our business and the bulk team is centered on product and technology.
We will keep an eye on costs to make sure that we operate as productive as possible and balance as volumes come back. The purpose for this is to the right fit for anybody examining a potential accession of or partnership opportunity with our company.”
The company explains that it is facing liquidity issues because its client “Bitcoin Jesus,” for his early promotion of the king crypto, was not able to pay the real debt.
CoinFLEX revealed that it is in the state of negotiating with the client in Hong Kong to likely get its assets back, accepting the truth that it can’t wind up its positions.
“We tried to wind up his account wisely using counterparts on the platform, but as the posts were so remarkable, included slippage as other big or a series of big order would intelligently create.
The false promise
During the process, the person was not only informed but also acknowledged us and made a word to pay back the amount and elaborate security to cover the loss. In the end, it was found that he had made a false promise.
“We have initiated a compromise in Hong Kong International Arbitaration Centre. The amount was $84 million which comes under the legal responsibility of the mentioned person to pay back but he has denied to return. The responsibility of paying back is his own responsibility that clearly means that the person is responsible of paying the amount, thus our attorney is more confident that we can impose the settlement against him.”
The chief executive officer of CoinFLEX, Mark Lamb, states that Bitcoin Jesus is in debt of $47 million in stablecoin USD Coin. But, he is refusing the claim and stating that the company is in debt of his money.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.