CoinFLEX sues Robert Ver to recover $ 84 million in outstanding debt

CoinFLEX, a Hong Kong-based physical futures cryptocurrency exchange, announced last Saturday that it has taken legal action to recover $ 84 million from a single long-term service customer.

Last month, the stock exchange suspended withdrawals after a counterparty later revealed that the long-time crypto investor Roger Ver failed to repay $ 47 million from a margin call.

Last Saturday, the stock exchange further revealed that the total amount that the investor owes is 84 million dollars. The stock exchange said this after calculating a final loss amount from significant positions in its original FLEX token.

CoinFLEX co-founders Sudhu Arumugam and Mark revealed that the stock exchange has started an arbitration procedure in Hong Kong to get back 84 million dollars. The founders said the process could take about 12 months before a verdict is handed down.

CoinFLEX co-founders commented: “We have started arbitration in HKIAC (Hong Kong International Arbitration Center) to recover this $ 84 million as the individual had a legal obligation under the agreement to pay and has refused to do so. His obligation to pay is a personal responsibility which means that the individual is personally responsible for paying the total amount, so our lawyers are very confident that we can enforce the judgment against him. “

The founders further revealed that CoinFLEX has signed a joint venture with a certain US-based crypto exchange as part of the work to revive the fortune.

In the meantime, CoinFlex plans to allow temporary withdrawals from its platform, but with some restrictions. On Saturday, the founders unveiled a “Locked Funds Plan” for the withdrawals. They mentioned that CoinFlex has been in discussions with creditors, investors and others, and now the stock exchange is looking at creating temporary liquidity for depositors.

Ripple effects of current market crash

On June 23, CoinFLEX stopped withdrawals with reference to “extreme market conditions” along with uncertainty regarding a certain counterparty. During that time, CoinFlex CEO Mark Lamb made it clear that the counterparty is not a lending company or Three Arrows Capital.

On June 28, the stock exchange announced plans to raise $ 47 million through a token sale to solve the withdrawal problem. The withdrawal problems came after a certain person’s account linked to Roger Ver went into negative equity during the recent market turbulence.

CoinFLEX described the client as an “high-integrity” individual, with liquidity issues related to the recent plunge into crypto- and non-crypto-markets, which have “significant holdings in several private unicorn companies and a large portfolio.”

Image source: Shutterstock