CoinFLEX is the next crypto company to run into financial problems. The cause, according to the crypto exchange’s account, is said to be an $84 million loss with its customer Roger Ver (@RogerVer), also known as ‘Bitcoin Jesus’. CoinFLEX to sue Roger Ver for refusing to pay millions of dollars to CoinFLEX for a leveraged position that was liquidated. The crypto exchange paused withdrawals on its platform last month due to this huge loss and is looking for fresh money. Roger Ver denies the allegations and claims that CoinFLEX would owe him “a substantial sum of money.“
According to a CoinFlex statement, they had a written manual margin arrangement with Roger Ver. Unlike normal users who are automatically liquidated when their margin ratio goes below our minimum requirements, users on manual margin have a grace period to send more collateral in support of their positions prior to it being liquidated. The customer’s privilege came with a requirement that the customer personally indemnifies us for shortfalls in his account following the liquidation of his positions.
Roger Ver purportedly failed to honor his obligations under this written agreement. CoinFLEX lawyers believe that we have a robust case and have commenced legal actions to recover the debts. Consequently, CoinFLEX commenced arbitration in HKIAC for the recovery of this $84m from Roger Ver.
To fix its acute financial crisis, CoinFLEX is looking to raise funds from investors. They are also speaking with large depositors to switch some of their deposits into equity. Allegedly, investors in this group of large depositors who have indicated that they may be in a position to help CoinFLEX.
