Bitcoin and altcoin platform CoinFlex has announced that it is taking legal action to recover $84 million in losses from a single customer. He said he is in talks to sign a joint venture with another crypto exchange to boost his wealth. Here are the details…
Bitcoin and altcoin platform open
The crypto exchange paused withdrawals on its platform last month after a counterparty it identified as Roger Ver failed to repay $47 million from a margin call. CoinFlex said in a blog post Saturday that the total investor owed increased after the exchange calculated a final tally of losses from “significant” positions in the native FLEX token. The blog post did not mention Ver by name. CoinFlex co-founders used the following statements:
The individual first asked us to liquidate his account, but then went on to tell us for a long time that he wanted to send substantial funds to the exchange to receive physical delivery of his futures positions. We understand now that he wasted time and hoped for a jump in the market that never happened.
CoinFlex begins arbitration proceedings
The pair announced that CoinFlex has started arbitration proceedings in Hong Kong to get back $84 million. He said they think it may take about 12 months before a decision is reached. Nicknamed “Bitcoin Jesus” for his early investment in crypto, Ver declined to comment on the case. He told Bloomberg last month that he has no outstanding debt with CoinFlex. In a tweet dated June 28, he said an unidentified counterparty owed him a “significant sum of money”.
CoinFlex is one of the few crypto platforms struggling to operate amid a massive market downturn that wiped nearly $2 trillion from the total value of cryptocurrencies. Many players have suspended their withdrawals or filed for bankruptcy. The crisis unleashed an industry-wide contagion network, where the failure of one firm had a domino effect on many others.
Sudhu and Lamb said in their blog post that the plan is to secure sufficient external financing in USDC (a stablecoin pegged to the value of the US dollar) to cover lost liquidity and resume withdrawals. CoinFlex also said they are in talks with a “major US exchange” about entering a joint venture once the financing process is complete. Founded in 2019, CoinFlex is a smaller crypto exchange focused on derivatives trading. It had a total value of about $145 million locked on its platform on Saturday.
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