Who controls it
flexUSD is a legacy CoinFLEX liability. CoinFLEX halted withdrawals during its 2022 insolvency, and a holder cannot redeem a remaining balance at par.
- Backing
- Historically an exchange liability tied to deposited stablecoins and CoinFLEX’s business; no segregated cash reserve backs it today.
- Holder’s claim
- The token is a legacy claim from a CoinFLEX product that later went through restructuring. It does not work as a cash equivalent.
- Redemption or sale
- CoinFLEX halted withdrawals in 2022; no dependable current par-redemption channel was established for the outstanding token.
Dependencies
- Legacy CoinFLEX liabilities
- Restructuring and successor entities
- Exchange records and administrator control
- Residual secondary-market liquidity
Losses and incidents
- CoinFLEX halted withdrawals in June 2022 amid a liquidity shortfall. Holders could still transfer the token but could not make CoinFLEX redeem it.
Advisor notes
Controlling party: CoinFLEX and successor or restructuring processes. Check whether the client can redeem directly with the issuer. Holding the token on chain leaves every reserve, custody, contract, and legal dependency in place.
A named organization or administrator controls issuance, transfers, reserves, redemption, or address restrictions. This grade can sit beside a sound reserve, a useful product, or a fitting role in a client account. It records who can act on the token and passes no judgment on the product.
Questions before use
- Does the exact contract and chain match the instrument reviewed here?
- Which party can mint, burn, pause, upgrade, block, or redeem?
- Does the client have direct redemption access or only secondary liquidity?
- What protocol, bridge, wallet, and custodian dependencies are added?
- Which event would force a review or a sale?
Sources
- Quantstamp: flexUSD smart-contract audit · primary
- Seychelles Supreme Court: Liquidity Technologies restructuring record · primary
- DefiLlama: Stablecoins circulation dataset · secondary
Issuers can change their documents and product terms. This page gives our reading of control as of 2026-08-19. Check the current terms before a client buys.
Legend: No freeze key: no issuer or administrator can freeze an address at this layer · Governed, no freeze: on-chain collateral and governance set the terms, but no issuer blocklist exists · Mixed control: on-chain mechanisms sit beside custodians, real-world assets, a central transaction orderer, or other parties a court or regulator can compel · Issuer can freeze: a named organization or administrator controls issuance, transfers, reserves, redemption, or address restrictions. How grading works.