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Several cryptocurrency companies have been facing severe liquidity issues recently due to the state of the cryptocurrency market. Due to the low trading and overall bearish sentiments, there has been huge selling and not enough volume for these companies to survive. While huge institutions have been laying off their workforce or using the funds set aside for instances like these, smaller companies are struggling to sustain their business.
Recently, the exchange coinFLEX had gained major traction as it had halted withdrawals of all assets across the platform. They had mentioned a counterparty that was to settle debts which would help them kickoff their functioning going forward. However, since there wasn’t mutual compliance between both parties, the CEO of CoinFLEX announced the person who defaulted by taking it online. According to CoinFLEX, the said counterparty was Roger Ver, and the owed amount was around $47 million.
Who is Roger Ver?
Roger Keith Ver is one of the many famous and influential icons in the crypto industry. He was an early adopter and avid supporter of Bitcoin and is often hailed as “Bitcoin Jesus”. He has been involved in several crypto-related startups and is an investor in many such companies. The entrepreneur currently serves as the CEO of Bitcoin.com
The spat went online
Earlier this week, CoinFlex had put out an announcement on Twitter about the defaulted counterparty it mentioned on the platform revealing it to be Roger Ver. The exchange mentioned that Roger Ver owed them roughly $47 million in USDC. This was since his margin call had defaulted and had thus created a negative balance of the mentioned amount. However, since he was one of the biggest and most important customers, CoinFLEX had arrangements set in place that would avoid the money from being gone completely.
According to a contract signed by him, he was to top up his negative funds regularly and the exchange would potentially aid in avoiding a liquidation scenario. However, this time, he had defaulted on his repayment leaving CoinFLEX to deal with its consequences, according to the exchange.
Mark Lamb, the CEO of CoinFLEX called out Roger Ver to which they received a reply. Roger Ver tweeted that, counter to what the platform mentioned, it was them who had substantial payments to be made to him. He publicly denied any “rumors” regarding him defaulting on the payment to the platform.
However, Mark Lamb who had previously mentioned that Roger Ver was served a notice of default as per the agreement they had in place, tweeted back to his reply, saying that they would clarify their statement and that the defaulter was 100% him. They also denied owing any debts to Ver and were disappointed at the apparently underhanded tactics by him to deflect from his liabilities.
The exchange has currently set up a plan to introduce a new coin called Recovery value coin or rvUSD to match the $47 million amount they are short of. To interest users to buy and thus help the exchange recover funds, the platform is providing 20% interest on the asset to investors.
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