CoinFLEX has released a new update on its current issue with Roger Ver.
According to the update, the exchange’s deficit has now risen to $84 million because it did not take into account the loss in liquidating his significant FLEX coin positions.
CoinFLEX explained that the situation was caused by a high net individual customer who had a special agreement with the exchange to have a grace period “to send more collateral” when the account faces liquidation.
The individual has however refused to honor this agreement which has resulted in a huge loss for the exchange.
CoinFLEX continued that it has started an arbitration process in Hong Kong against this individual which could last for as long as 12 months.
Per the statement,
“We have commenced arbitration in HKIAC for the recovery of this $84m as the individual had a legal obligation under the agreement to pay and has refused to do so. His liability to pay is a personal liability which means the individual is personally liable to pay the total amount, so our lawyers are very confident that we can enforce the award against him.”
CoinFLEX also apologized to its users over the current situation saying it is not “a position we ever envisioned we would be in.
Roger Ver is CoinFLEX “Large Individual Customer”
CoinFLEX’s “large individual customer” has been revealed to be Roger Ver, one of the earliest investors in the crypto industry tagged “Bitcoin Jesus.”
Roger Ver has, however, insisted that he does not owe the exchange, rather he is being owed by the firm.
Ver, on July 3, in a Twitter space said that CoinFLEX owed him.
According to him, his “statement is probably going to be a bit disappointing to the people that are on the call here, but due to the lawyers that have already been involved in the legal complexities there, all I can say at the moment is I have no debt to CoinFLEX.”
He also mentioned that he is working towards the recovery of the funds by involving lawyers in the case