Another crypto company suspended selections due to extreme market conditions

The number of cryptocurrency companies stopping the selections is still growing. Now The CoinFlex cryptocurrency exchange has announced a suspension of withdrawals for its customers due to "extreme market conditions".

This decision has caused mistrust in some users, and as a result, various people have used Twitter to accuse the stock market of being a financial pyramid. According to the statement, the stock exchange will renew the selections as soon as possible, updating the information today on Monday.

CoinFlex has suspended selections

CoinFlex is a platform that provides users with passive earnings and an exchange for spot and margin trading. The exchange also has two own cryptocurrencies, FlexCoin (FLEX) and Flex USD stablecoin (FLEXUS), which dropped significantly in value after the suspension of withdrawals from the exchange.

CoinFLEX CEO Mark Lamb announced news in the blog post:

"Given the extreme market conditions last week and the continuing uncertainty regarding the counterparty, we are announcing today that we are suspending all withdrawals. We fully expect to restore the selections to a better position as soon as possible. As soon as we find out more, we will fully communicate with you. "

Although the blog post does not mention the participating counterparty, Lamb clarified that neither the Three Arrows Capital (3AC) crypto hedge fund nor any lending platform is an anonymous entity.

Risk for customers' funds on stock exchanges

Recently, users have been very concerned about the risks that funds held on cryptocurrency exchanges are not safe.

CEO Coinbase has revealed that exchanges must have clients' assets in the account separate from their own assets, under Rule 15c3-3 of the US Securities and Exchange Commission (SEC). This information has provoked much debate in the market and has also sparked speculation that some cryptocurrency exchanges do not comply with this rule.

The domino effect of the bear market

CoinFLEX is the latest crypto-company to stop the selections in June this year. The crypto lender giant Celsius became the first to do so on June 13, citing "extreme market conditions."

Another Babel Finance lending protocol also suspended withdrawals and repurchases on its platform due to liquidity problems.

Cryptocurrency broker Voyager Digital decreased your daily withdrawal limit from $ 25,000 to $ 10,000. The update came shortly after the company revealed its total exposure to 3AC of more than $ 650 million in BTC and USDC.

The company is also considering legal action in the event that Three Arrows Capital is in arrears.

The Finblox staking platform, another cryptofirme with exposure to 3AC, also adjusted its withdrawal limit to $ 1,500 per month from 500 per day and suspended the distribution of rewards.

You might be interested in: WHERE TO BUY BITCOIN AND CRYPTOMEN