CoinFLEX to Sue Blockchain.com for a $4.3 Million FLEX Asset Debt
The Seychell-based crypto exchange CoinFLEX issued a demand letter on February 24 to Blockchain.com. The letter revealed that CoinFLEX had issued a loan worth 3 million FLEX coins to Blockchain.com in 2022. The CoinFLEX team announced plans to take legal action against the Luxembourg financial service provider due to failure to honor the loan agreement.
In response to the CoinFLEX notice, Blockchain.com dismissed the claim arguing that the crypto exchange owes them an equal amount.
Scope of the Demand Notice
According to the February 24 demand letter Blockchain.com was given until March 7 to set plans for the loan repayment. The CoinFLEX team confirmed to follow the legal process from March 21 that will expose the financial provider to a statutory demand.
As per the legal requirement, Blockchain.com loan repayment will be extended by another 21 days. The notice revealed that the loan was disbursed in four subsequent batches from March 2022 to mid-June. Additionally, the report disclosed that Blockchain.com would accrue additional charges since the loan was past due.
Revolving around the CoinFLEX notice, the legal action will compel Blockchain.com to settle the total cost of the loan, including the interest. The demand letter was formulated on an automated market maker (AMM +) basis. The AMM+ loan repayment approach was developed in April 2022 when the Bitcoin bulls first appeared in the crypto market after a long time.
In the meantime, the CoinFLEX team has not revealed any supporting documents concerning the matter. The demand letter bears an official seal from a Singapore-based legal entity, Nine Yards Chamber LLC.
Blockchain.com Reacts to the Demand Notice
In response to the February 24 demand report, Blockchain, at the edge of dissolution, argued that CoinFLEX owes the firm a measurable amount from the service provided, which is yet to be fully paid. The financial provider will soon initiate plans to recover the funds from the crypto firm.
Elsewhere, the chief executive of CoinFLEX, Mark Lamb, demanded Blockchain.com to make an effort and repay the FLEX coin it owes. Lamb is currently seeking to raise a capital of $25 million to establish a new joint venture Open Exchange (OPNX) in partnership with the Three Arrow Capital founders. The new venture willuse FLEX as its native token.
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