Blockchain.com Accused Of Failing To Pay IDR 65 Billion To CoinFLEX

Blockchain.com is accused of failing to pay for FLEX token loans. (Photo; Doc. Crypto Economy)

Singapore-based Nine Yards Chambers LLC law firm reports that the leading crypto company Blockchain.com, deemed to have failed to pay 4.3 million US dollars (equivalent to Rp65 billion) in FLEX coins to crypto exchange CoinFLEX.

According to Nine Yards Chambers LLC, Blockchain.com has until March 7 to confirm payments for FLEX coins and must complete transactions until March 21. Otherwise, Nine Yards Chambers LLC threatens to start legal proceedings, including lawsuits for payments.

The law firm also accused Blockchain.com of failing, refusing, and/or neglecting to pay 3 million FLEX coins that had matured to be paid off. The law says that if CoinFLEX decides to uphold its rights through legal proceedings, Blockchain.com must pay the maximum amount of interest and fees that can be recovered legally.

Even so, Blockchain.com denied the claim and stated that there was no evidence or on-chain data that could support the argument as CoinSpeller reports.

According to CoinFLEX, Blockchain.com received 3 million FLEX tokens in loan between March and June last year. The loan claim is based on the Automatic Market Maker Participation Agreement (AMM) which was allegedly signed on April 12, 2022.

CoinFLEX is experiencing financial difficulties after the winter of the 2022 cryptocurrency and temporarily halting the withdrawal of customer digital assets on June 23. However, the company reopened recall services a week later and began restructuring.

Currently, CoinFLEX is proud of the more than 50 million US dollars (Rp762 billion) interest paid to customers, more than 124 million (Rp1.8 trillion) total value locked (TVL), and a total trading volume of around 2.05 trillion US dollars (equivalent to Rp31.2 quadrillion).

On the other hand, Blockchain.com is struggling to keep its finances going after losing $270 million from cash loaned to the bankrupt Three Arrows Capital (3AC).

Currently, Blockchain.com must resolve their problems in court. A number of crypto companies have gone bankrupt and are restructuring to keep their customers.