CoinFLEX takes legal action to recover debt from Roger Ver

The platform also intends to attract large investors to unfreeze customer funds, they have been invited to invest in equity

11.07.2022 - 12:30

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2 min

What’s new? Cryptocurrency exchange CoinFLEX appealed to the Hong Kong International Arbitration Center (HKIAC) to recover the $84 million from the investor that he owed the platform after forcibly liquidating the position. The exchange suspended withdrawals at the end of June after CoinFLEX CEO Mark Lamb claimed that investor Roger Ver owed the platform 47 million in USDC stablecoins. It is noted that the initial assessment of the damage from the liquidation of the investor’s position was incorrect as it did not take into account the “significant” volume in native tokens FLEX.

CoinFLEX’s blog

What else does the blog say? The co-founders of the exchange Mark Lamb and Sudhu Arumugam noted that the arbitration process could last a long time. According to their estimates, it will take about 12 months before a judgment is obtained in Hong Kong, after which CoinFLEX will be able to foreclose on Roger Ver’s assets around the world. The platform’s representatives stressed that the lawyers were positive about the likelihood of success in this proceedings. They added:

“The individual first asked us to liquidate his account, but then continued to tell us for some considerable time afterwards that he wanted to send significant funds to the exchange to take physical delivery of the futures positions. It is clear to us now that he was wasting time and hoping for a bounce in the market that never materialized.”

Ver had previously commented on the situation, noting that he was not indebted to the exchange, but rather was seeking loan repayments from it.

Lamb and Arumugam also said in a CoinFLEX blog post that the company plans to raise funds from investors and will offer large customers “rolling some of their deposits into equity.”

On July 1, the exchange postponed the resumption of withdrawals, citing negotiations with investors interested in buying the Recovery Value USD (rvUSD) token. The platform offered to issue a new asset to restore the operation, offering a 20% annual return.

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