Roger Ver, CEO of Bitcoin.com.
Anthony Kwan | Bloomberg | beautiful pictures
Digital asset exchange CoinFlex is locked in a public battle with longtime crypto investor Roger Ver over $47 million in debt, reflecting the latest narrative coming amid a market crash. to pour.
On Tuesday, CoinFlex CEO Mark Lamb named Roger Ver, who was nicknamed “Bitcoin Jesus” for his evangelical views early in the industry, as an investor failed to pay $47 million USDC stablecoins as part of a margin call.
USDC is a stablecoin pegged one to one to the US dollar. A margin call is a situation in which an investor must commit more funds to avoid a loss in a trade made with borrowed cash.
CoinFlex halted withdrawals for customers last week. Lamb revealed on Monday that an individual investor’s account has become “negative equity”. The company will usually automatically liquidate that investor’s positions. But this particular investor had an agreement with CoinFlex that wouldn’t allow this to happen.
In return, the investor pledged “strict personal guarantees on account equity and margin calls in exchange for not being liquidated,” CoinFlex said.
At the time, Lamb did not name the investor. But on Tuesday, the CoinFlex CEO claimed it was Ver who owed the company money. Lamb said Ver was sent a default notice.
“He has a long track record of raising margin before and meeting the margin requirements under this agreement. We have spoken to him regularly about this situation with the aim of resolving it. We still want to solve it.” Lamb said in a tweet.
But Ver denied that he was the investor behind the debt. Ver said that a partner owes him “a substantial amount of money” and that he is currently “seeking reimbursement” of his money.
CoinFlex’s Lamb said the debt was “100% related” to Ver’s account and said the company “denies that we have any debt” to Ver.
“His claims are blatantly false. It is unfortunate that Roger Ver needs to use such tactics to escape his responsibilities and obligations,” Lamb said.
Ver has been in the crypto industry for over a decade, investing in several businesses and co-founding Bitcoin.com and Blockchain.com.
On Monday, CoinFlex announced plans to issue a new coin called Recovery Value USD, or rvUSD, to increase the shortfall of $47 million. The company is offering a 20% interest rate on the coin to attract investors.
The Story of CoinFlex-Ver is the latest TV series opened by Cryptocurrency prices tumbled over the past few weeks wiped billions of dollars of value off the market during what has been dubbed the new “crypto winter.”
Three Arrows Capital, a hedge fund that invests in digital assets, has dived into liquidation, CNBC reported on Wednesday. Meanwhile, some companies including lending company C are facing liquidity crisis and Cryptocurrency companies have gone through layoffs.
