The CoinFlex-Ver tragedy is the most recent drama to develop as a result of the recent decline in cryptocurrency prices. Read the story of the person labelled as Bitcoin Jesus and the mystery investor behind $47 million CoinFlex debt.
Digital asset exchange CoinFlex is embroiled in a public dispute with long-time cryptocurrency investor Roger Ver over a $47 million debt, the latest tale to emerge from the market fall.
CoinFlex CEO Mark Lamb cited Roger Ver, dubbed “Bitcoin Jesus” for his evangelical ideals early in the sector, as the investor who refused to pay $47 million in stablecoin USDC as part of a margin call on Tuesday.
USDC is a stablecoin that is tied to the US dollar one-to-one. A margin call occurs when an investor is required to commit additional funds in order to avert losses on a deal done with borrowed funds.
Customers’ withdrawals from CoinFlex were suspended last week. On Monday, Lamb disclosed that a certain investor’s account had “negative equity.” Normally, the corporation would liquidate the investor’s positions automatically. However, this particular investor and CoinFlex have a contract that prevented it from happening.
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According to CoinFlex, the investor had promised “stringent personal guarantees around account equity and margin calls in exchange for not being liquidated.”
Lamb did not identify the investor at the time. However, the CEO of CoinFlex asserted on Tuesday that Ver was the one who owed the business money. Ver has received a notice of default, according to Lamb.
“He had a long track record of previously topping up margin and meeting margin requirements in accordance with this agreement. We have been speaking to him on calls frequently about this situation with the aim of resolving it. We still would like to resolve it,” Lamb said in a tweet.
Ver, though, vehemently denied being the financier behind the debt. Ver stated that he is “seeking the return” of his money from a counterparty who owes him “a substantial sum of money.”
The company “denies that we have any debts owing” to Ver, according to CoinFlex’s Lamb, who also claimed that the debt is “100% related” to Ver’s account.
“His statement is blatantly false. It is unfortunate that Roger Ver needs to resort to such tactics in order to deflect from his liabilities and responsibilities,” Lamb said.
Ver has been involved in the cryptocurrency sector for more than ten years. He has invested in a number of companies and co-founded Blockchain.com and Bitcoin.com.
In order to offset the $47 million shortfall, CoinFlex revealed plans to launch a new coin dubbed Recovery Value USD, or rvUSD, on Monday. To entice investors, the business is providing a 20 percent interest rate on the coin.
The CoinFlex-Ver tragedy is the most recent drama to develop as a result of the recent decline in cryptocurrency prices, which has erased billions of dollars of market value during a period known as a new “crypto winter.”
According to a report on CNBC on Wednesday, the hedge fund Three Arrows Capital, which invests in digital assets, has gone into liquidation. While this is going on, a number of businesses, including lending company Celsius, are experiencing a liquidity crisis, and cryptocurrency firms have had to make layoffs.