CoinFLEX CEO Files Default Notice Against Bitcoiner Roger Ver

“We’ll do whatever it takes to get these funds back,” the company’s CEO said

article-image

CoinFLEX | Source: Shutterstock

share

key takeaways

  • After failing to receive $47 million in USDC funds from ​​“Bitcoin Jesus,” CoinFLEX has turned toward a “recovery” token
  • Recovery Value USD (rvUSD) will offer a 20% annual return for holders

After CoinFLEX’s chief executive accused early Bitcoin adopter Roger Ver of owing the company $47 million in the stablecoin USDC, the head of the exchange told Blockworks he’s shifted to focus on recovering the funds he says are owed. 

CEO Mark Lamb tweeted Tuesday that Ver — who is well-known for backing growing Bitcoin-focused startups — has been a longtime customer and failed to meet a recent margin call.

Ver has denied the claims instead alleging the company owes him money. 

Loading Tweet..

Ver told Blockworks via Telegram he still stands behind his tweet posted on Tuesday and that a statement from his lawyers would be issued sometime on Thursday.

CoinFLEX, an exchange incorporated in the Republic of Seychelles, halted customer withdrawals of funds last week and issued a token named Recovery Value USD (rvUSD) that offers a 20% annual return in hopes of raising funds to stabilize the business. 

“We are still speaking to [Ver], and we have filed a default notice,” Lamb said. 

“We’ll do whatever it takes to get these funds back.” 

Lamb is now speaking with a number of distressed debt funds and other institutional investors, saying “there is a large amount of precedent for these types of transactions.”

“Fast and swift transactions by this nature [are in] the best interest of our customers,” he said. “We want to get customers fully capitalized and withdraw their funds as quickly as possible,” Lamb said. “The amount of interest we’ve seen from that industry, debt credit and distressed debt is enormous. We are continuing to speak to various participants in that industry.”

Lamb and Ver first met some 10 ten years ago and have had what Lamb describes as a “personal recourse, non-liquidation relationship.”

The takeaway, from CoinFLEX’s perspective: the exchange is unable to get its lent money back and Ver is personally liable for any loans or assets he can’t repay soon.

Lamb declined to comment on whether the rvUSD token plan has been run by the Financial Services Authority Seychelles.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

After a rocky start, bitcoin ETF shareholders are now well in the green

article-image

Revolut said that the standalone crypto exchange is currently “invite only”

article-image

The stock price jump comes after Coinbase reported ending its seven-quarter run of net losses during the fourth quarter

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally