The “Bitcoin Jesus” Roger Ver is once again under scrutiny as crypto exchange CoinFLEX is launching legal action against him to recover $84M in outstanding debt.
Last month, CoinFLEX accused Roger Ver as the $47M defaulter which is why the platform has frozen cryptocurrency withdrawals for its users.
Ver refuted the accusations, instead claiming that CoinFLEX owed him a huge amount of money and that he is actively demanding reimbursement.
As per the new update, CoinFLEX has initiated arbitration in Hong Kong International Arbitration Centre (HKIAC) to recover this $84M since Roger Ver has a legal obligation to pay under the agreement and has failed to do so.
CoinFLEX co-founders Sudhu Arumugam and Mark Lamb didn’t directly mention Roger Ver’s name in the announcement but stated that Ver initially requested that the exchange liquidate his account.
Ver then told the team that he intended to send significant amounts to the exchange to take physical delivery of the futures holdings.
“It is clear to us now that he was wasting time and hoping for a bounce in the market that never materialized,” the update reads.
CoinFLEX attempted to liquidate his account utilizing counterparts on the platform, but because the holdings were so huge, there was slippage, as any large or series of large orders would legitimately do.
The platform predicts that it will take roughly 12 months to obtain a verdict in Hong Kong through the arbitration process. “Thereafter, we will be able to enforce that judgment against his worldwide assets,” it notes.
CoinFLEX is now concerned that if they resume operations, the price of its FLEX Coin may fluctuate, affecting the value of collateral held by the customers.
The exchange feels that recovering the $84M debt from the Bitcoin Jesus will assist to boost confidence in and support the market price of the FLEX Coin.
CoinFLEX is now gearing up to raise funds from investors and is also in talks with depositors who want to aid the company by converting some of their deposits into equity.
The platform expects the original or modified format of Recovery Value USD (rvUSD) will most likely be employed to boost its liquidity.
CoinFLEX is also in talks with a major US exchange about prospective cooperation, which it intends to finalize as soon as finance is obtained.
Also Read: CoinFLEX Creates $47M Recovery Value USD Token to Raise Funds
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 attracted huge depositors eager to convert their funds into stocks. While discussions with additional partners and investors continue, CoinFLEX is releasing liquidity for 10% of balances for withdrawal, with a few limitations.
CoinFLEX anticipates that all technological, legal, and operational tasks will take approximately one week. Currently, the FLEX coin is trading at a price of $0.289601.
