The company paused withdrawals in June, citing “extreme market conditions” and “continued uncertainty involving a counterparty.” CoinFLEX Chief Executive Mark Lamb later said via Twitter that the counterparty is Roger Ver, a prominent crypto investor often called “Bitcoin Jesus” for being one of the earliest investors in the cryptocurrency.
Mr. Lamb initially said Mr. Ver failed to pay CoinFLEX $47 million denominated in the stablecoin USD Coin as part of a margin call. In a July 9 update, the company said the shortfall is $84 million due to the substantial loss in liquidating the customer’s “significant FLEX coin positions.”
FLEX Coin has plunged 48% in the past month, according to data provider CoinGecko.
Mr. Ver has denied via Twitter that he defaulted on a debt to a counterparty.
CoinFLEX, registered under Liquidity Technologies and incorporated in the Seychelles, is now seeking to recover the funds through arbitration proceedings in Hong Kong. The company estimates that it will...
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