CoinFLEX Slaps Former Bitcoin.Com CEO with $84M Lawsuit
2022.07.12 07:25
CoinFLEX Slaps Former Bitcoin.Com CEO with $84M Lawsuit
- CoinFLEX blames Roger Ver for defaulting on a $47M loan.
- Mark Lamb and Sudhu Arumugam double the lawsuit to $84M.
- CoinFLEX is looking to allow 10% of withdrawals in a new ‘Locked Funds’ plan.
As the harsh winds of the crypto winter sweep through the market, the number of crypto platforms facing “crunch time” has steadily risen. Among them is CoinFLEX, a Seychelles based crypto trading platform founded by Mark Lamb which halted all withdrawals on June 23rd. Despite working on a fix, the date of resumption for the service has yet to be determined.
NEWS UPDATE: CoinFlex files a complaint against Roger Ver to Hong Kong arbitration authorities for an $84M deficit #CryptoLawsuit #Coinflex #Bitcoin
— Gokhshtein Media (@gokhshteinmedia) July 10, 2022
CoinFLEX Is Looking to Crucify “Bitcoin Jesus”
According to messages previously posted on social media, CoinFLEX CEO Mark Lamb is after Roger Ver, one of the founders of Bitcoin.com and a prominent ambassador of cryptocurrency affectionately known by crypto enthusiasts as “Bitcoin Jesus”. Although Ver’s name isn’t explicitly stated anywhere in CoinFLEX’s weekend blog post, it included a number of subtle digs that implicated Roger Ver as the root cause of CoinFLEX’s current struggles.
“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.” Read the message on the official blog, indicating the importance of the outcome of the lawsuit for CoinFLEX’s future plans.
Mr. Ver has since categorically denied all allegations outlined in the arbitration case. Adding fuel to the fire, Roger Ver claims that CoinFLEX in fact owes him a “substantial amount of money”. Mark Lamb and Sudhu Arumugam have previously estimated Roger Ver’s damage to the company to be worth $47 million.
Roger Ver owes CoinFLEX $47 Million USDC. We have a written contract with him obligating him to personally guarantee any negative equity on his CoinFLEX account and top up margin regularly. He has been in default of this agreement and we have served a notice of default.
— Mark Lamb (@MarkDavidLamb) June 28, 2022
However, that figure doubled over the weekend, as CoinFLEX allegedly suffered twice its losses after Roger Ver’s FLEX positions were liquidated, casuing CoinFLEX’s native token to crumble.
At press time, Flex Coin (NASDAQ:FLEX) trades at $0.289498, according to CoinGecko, marking a shocking 65.7% drop in value compared to a week ago, and a shattering 94.2% collapse over the last 30 days.
Another Struggling Company Looking for Buyouts?
Despite CoinFLEX pledging to release 10% of customer funds by as soon as next week, it seems that the hard times are far from over. “The ongoing discussions with existing creditors, new investors and others will take many weeks”, remarked the CoinFLEX team.
Nonetheless, the recent crypto storm has given rise to many similar cases, with both Celsius and Vauld both receiving buyout offers from London-based Nexo just moments after the announced suspension of transactions. It seems that CoinFLEX is eager to take a similar route, as the company claims to have already found a partner that “intends to enter into a formal joint venture with us as soon as financing is achieved”.
What happened with @CoinFLEXdotcom and their decision to freeze customer withdrawals?CEO @MarkDavidLamb joins @AshBennington in a revealing interview to discuss the state of the company, what went wrong & whether there is a way back.LIVE https://t.co/P9DLl9vfhX
— Real Vision (@RealVision) July 1, 2022
Why You Should Care
Many crypto trading platforms are having to adapt to the extreme market conditions. Three Arrows Capital (3AC), Celsius, and Vauld all suffered dramatic losses, leading to insolvency, while big players like Coinbase (NASDAQ:COIN) were forced to lay off as much as 18% of their staff.
