Roger Ver, CEO of Bitcoin.com.
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Digital asset exchange CoinFlex is embroiled in a public battle with longtime cryptocurrency investor Roger Ver over a $47 million debt, reflecting the latest saga to unfold amid the market crash.
On Tuesday, CoinFlex CEO Mark Lamb named Roger Ver, who earned the nickname “Bitcoin Jesus” early on for his evangelical views in the industry, as the investor who failed to raise $47 million in stablecoin USDC in a deal pay margin calls.
USDC is a stablecoin that is pegged one-to-one to the US dollar. A margin call is a situation where an investor needs to put in more funds to avoid losing on a trade with borrowed money.
CoinFlex suspended customer withdrawals last week. Lamb announced Monday that an individual investor’s account has “negative equity.” The company would normally automatically liquidate this investor’s positions. But this particular investor had an agreement with CoinFlex that didn’t allow it.
In return, the investor “pledged strict personal guarantees on account equity and margin calls in exchange for not being liquidated,” CoinFlex said.
Lamb did not name the investor at the time. But on Tuesday, CoinFlex’s CEO claimed it was Ver who owed the company money. Lamb said Ver had been served with a notice of default.
“He had a long track record of adding margin and meeting margin requirements under this agreement. We spoke to him many times on the phone about this situation in order to resolve it. We’d still like to solve them,” Lamb said in a tweet.
But Ver denied he is the investor behind the debt. Ver said a counterparty owes him “a substantial sum of money” and he is currently seeking “return” of his money.
CoinFlex’s Lamm said the debt was “100% linked to Ver’s account” and the company “denies that we have any debt” to Ver.
“His statement is obviously false. It is unfortunate that Roger Ver has had to resort to such tactics to distract himself from his obligations and responsibilities,” Lamb said.
Ver has been active in the cryptocurrency industry for more than a decade, investing in several companies 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 make up the $47 million shortfall. The company is offering 20% interest on the coin to attract investors.
The CoinFlex-Ver saga is the latest drama to unfold in the wake of a slump in cryptocurrency prices over the past few weeks, wiping billions of dollars in value from the market in a period dubbed the new “crypto winter.” Has.
Three Arrows Capital, a hedge fund that invests in digital assets, has plunged into liquidation, CNBC reported on Wednesday. Meanwhile, a number of companies, including lending firm Celsius, are facing a liquidity crunch and crypto firms have been through layoffs.