The “Bitcoin Jesus” Roger Ver is once again under scrutiny as crypto exchange CoinFLEX is undertaking legal action against him to recover $84M in outstanding debt.
As NFTHi reported Last month, CoinFLEX accused Roger Ver of not paying the $47M defaulter. The reason is that the platform has frozen cryptocurrency withdrawals for its users.
Ver denied the accusations, instead asserting that CoinFLEX owed him a massive amount of money and that he is vigorously demanding a refund.
As per the latest update, CoinFLEX has prompted arbitration in Hong Kong International Arbitration Centre (HKIAC) to recover this $84M since Roger Ver has a legal responsibility to pay under the agreement and has failed to do so.
CoinFLEX co-founders Sudhu Arumugam and Mark Lamb did not directly cite Roger Ver’s name in the statement but stated that Ver initially demanded that the exchange liquidate his account.
Ver then told the team that he planned to spend substantial amounts on the exchange to take physical delivery of the futures holdings.
In the update, they mention that this is clear that he was wasting time and hoping for a bounce in the market that never occurred.
CoinFLEX tried to liquidate his account using counterparts on the platform, but because the holdings were so massive, there was slippage, as any large or series of large orders would legitimately do.
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CoinFlex plans to Retrieve $84 Million
The platform forecasts that it will take approximately 12 months to receive a verdict in Hong Kong through the arbitration process. Thereafter, they will be able to execute that judgment against his worldwide assets.
CoinFLEX is now concerned that if they restart operations, the price of its FLEX Coin may fluctuate, influencing the value of collateral held by the customers.
The exchange feels that recovering the $84M debt from the Bitcoin Jesus will help to boost confidence in and sustain the market price of the FLEX Coin.
CoinFLEX is now preparing to raise funds from investors and is also in talks with depositors who want to assist the company by converting some of their deposits into equity.
Further, the platform also anticipates the original or modified format of Recovery Value USD (rvUSD) will most probably be employed to boost its liquidity.
CoinFLEX is also in talks with a major US exchange about forthcoming cooperation, which it plans to finalize as soon as finance is obtained.
Under the arrangement, the U.S. exchange would leverage CoinFLEX’s technology to give access to U.S. stocks repo markets utilizing an offshore license.
CoinFLEX has lured huge depositors eager to transform their funds into stocks. While discussions with additional partners and investors persist, CoinFLEX is unleashing liquidity for 10% of balances for withdrawal, with a few limits. The company foresees that all technological, legal, and operational tasks will take roughly one week.
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