Founder of CoinFLEX Accused of Misappropriation of Creditor Assets
An account on X (formerly Twitter) named “CoinFLEX Real” has made allegations against the founder of CoinFLEX, Mark Lamb, and his partners at Three Arrows Capital (3AC), accusing them of misappropriating creditor assets for personal gain. The accusations claim that Lamb, along with Zhusu and Kyle Davies of 3AC, used funds entrusted to them as their own personal “piggy bank.”
CoinFLEX’s Downfall and Restructuring Proposal
CoinFLEX faced significant losses amounting to $160 million, leading to its collapse in June 2022. A negative balance from one of its customers, Roger Ver, triggered this downfall. Following this, a group of creditors developed a restructuring proposal to revive the exchange.
In September 2022, CoinFLEX’s leadership presented a restructuring plan that would give creditors a majority stake and control of the board. The company retained $10 million for litigation against Roger Ver and to support a reboot.
Mark Lamb’s Alleged Misconduct
In January 2023, Mark Lamb established a separate exchange called OPNX, seemingly unrelated to CoinFLEX. However, it is alleged that OPNX was supported by CoinFLEX’s funds and resources. Lamb also allegedly misled regulators by presenting OPNX as part of CoinFLEX.
Over the next six months, there was minimal communication from Lamb and his partners regarding the remaining funds and spending. Creditors were kept in the dark about proper reporting and were allegedly unable to take action. It is also claimed that the founders manipulated the token’s price and froze account withdrawals for users with substantial FLEX balances.
Controversial Settlement and Concealment of Misdeeds
In August 2023, a board was finally formed, but Lamb reportedly provided little meaningful information and refused to attend most board meetings. He demanded additional funds from creditors for legal expenses and personal costs related to arbitration. Allegedly, Lamb secretly met with Roger Ver to settle a lawsuit against CoinFLEX.
As evidence of wrongdoing was uncovered by investigators in CoinFLEX’s office, it appeared that Lamb, Davies, and Su planned to shut down the exchange to destroy evidence and hide their misdeeds.
Hot Take: Seeking Justice for the Crypto Community
The account “CoinFLEX Real” believes that action must be taken against these individuals to protect the reputation of the crypto community. They have called on the community for support in pursuing justice and holding these individuals accountable.
Source: CoinFLEX Real
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