Today, Mark Lamb, CEO of the crypto exchange CoinFLEX said on his official Twitter account that Roger “Bitcoin Jesus” Ver had defaulted on a $47 million USDC margin call.
According to Lamb’s statement, rumors that the exchange was facing economic problems are plain wrong. Instead, the exchange’s treasury is low because of Ver’s debt, and they are looking for ways to raise money and be able to restart withdrawals. A special contract between Ver and CoinFLEX prevented the exchange from liquidating Ver’s positions.
Roger Ver owes CoinFLEX $47 Million USDC. We have a written contract with him obligating him to personally guarantee any negative equity on his CoinFLEX account and top up margin regularly. He has been in default of this agreement and we have served a notice of default.
— Mark Lamb 💪 (@MarkDavidLamb) June 28, 2022
Roger Ver Refuses to Pay
According to Lamb, the company repeatedly contacted Ver to resolve this situation; however, the Bitcoin Cash evangelist maintained his attitude, denying that he owed them any money. As a result, Lamb took to social media to prove that “the debt is 100% related to his account”.
In addition, the CoinFLEX CEO said his exchange has no debt with Ver, as he wanted to “shamelessly” disclose through his social networks.
“CoinFLEX also categorically denies that we have any debts owing to him. His statement is blatantly false. It is unfortunate that Roger Ver needs to resort to such tactics in order to deflect from his liabilities and responsibilities.”
Coinflex Needs to Raise $47M to Resume Withdrawals
As CryptoPotato recently reported, CoinFLEX had become the latest cryptocurrency exchange to withhold money from its clients, diplomatically announcing that the lack of liquidity to allow withdrawals was due to “external market conditions” without ever mentioning Ver.
Recently, however, CoinFLEX announced its plans to launch a liability token called Recovery Value USD (“rvUSD”) to cover Ver’s debt.
“During the recent market volatility, a long-time customer of CoinFLEX’s account went into negative equity, meaning the Individual’s account currently holds a negative balance. In response, CoinFLEX made the decision to halt user withdrawals starting from June 23rd, 2022.”
In the same statement, CoinFLEX indicated that the cause of these problems was a single individual facing temporary liquidity issues due to the recent crypto market downturn, assuring that none of the other accounts operating on CoinFLEX have negative equity.
For now, the community is still waiting for a solid explanation as to why CoinFLEX decided to harm hundreds of users instead of liquidating a trading position that, despite being very large, would have only influenced a single person.
So far, Bitcoin Cash is on a heavy bearish trend, near the $100 support and over 90% below its ATH. So, if CoinFLEX is telling the truth, the future does not seem so nice for Roger Ver and his long Bitcoin Cash bet.