Summary:
- The team at CoinFLEX has stated that they have a deficit of $84 million originating from ‘a large individual customer’ that had earlier been identified as Roger Ver.
- Initially, the deficit was estimated at $47 million, but this value did not include the significant loss in liquidating his significant FLEX coin positions.
- CoinFLEX has stated that it has started arbitration proceedings in Hong Kong against the ‘large individual customer.
The team at CoinFLEX has released an update on the ongoing situation at the crypto exchange.
The update begins by apologizing to the CoinFLEX community for ‘the trauma this situation has caused’ and further explained that the team had been unresponsive for the last two weeks as they sought companies or partners to invest in the crypto exchange.
CoinFLEX’s Deficit Now Stands at $84 Million.
In addition, the CoinFLEX team further elaborated on their financial situation by explaining that it was the result of a large individual customer who had a written manual margin arrangement with the exchange. The agreement meant that the individual had a grace period ‘to send more collateral’ in the event of potential liquidation.
However, the individual ‘failed to honor his obligations pursuant to this written agreement.’
Upon further analysis, the CoinFLEX team has calculated the financial deficit as a result of the individual to have reached a value of $84 million. They explained:
The first estimate of $47m which we communicated did not include the significant loss in liquidating his significant FLEX coin positions. Now that we have found a bid for that size, the liquidations have created a final deficit of $84m for the account.
The Individual Had Earlier Been Identified as Roger Ver.
In a June 2022 tweet which can be found below, CoinFLEX’s CEO, Mark Lamb, identified the large individual customer as being Roger Ver, commonly known as Bitcoin Jesus.
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
CoinFLEX has Started Arbitration Proceedings in Hong Kong.
Consequently, the CoinFLEX team has begun what it describes as arbitration proceedings in Hong Kong against the individual. They said:
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.
They also gave a probable timeline of 12 months for the matter to get a judgment in Hong Kong.