Roger Ver makes ‘disappointing’ claim on how CoinFLEX saga unfolds

Roger Ver gave his opinion on the CoinFLEX situation during the last Bitcoin Cash meeting place session.

Unfortunately, for everyone involved, Ver couldn’t offer any new information, saying legal agreements prevent him from saying more at this time.

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On June 24, crypto exchange CoinFLEX announced that it was suspending user withdrawals “due to extreme market conditions” and “continued uncertainty involving a counterparty.”

Later, the counterparty mentioned in the statement turned out to be the developer of Bitcoin Cash (BCH) Ver. CoinFLEX CEO Mark Lamb alleged that Ver, who is an investor in the company, owed the exchange $47 million in USDC.

The debt is believed to be linked to Ver’s CoinFLEX account, which entered negative equity. Under normal circumstances, service providers automatically liquidate the position. However, CoinFLEX said it made a deal with Ver to keep the positions open, which resulted in mounting losses as prices fell.

That deal was backed by “strict personal guarantees,” Lamb said Ver had, in the past, always completed margin calls in accordance with the deal.

Worm denied the allegations and reversed the situation on CoinFLEX, saying the company owed him “a substantial amount of money.”

To reinstate withdrawals, Lamb offered the “salvage value USD” (rvUSD) token, which represents the black hole tokenization of $47 million.

Talk to Bloombergthe CEO of CoinFLEX described it as a possible solution to quickly reinstate withdrawals.

“Right now we can’t have withdrawals, there are many different ways to solve these problems in crypto finance, and crypto is on the cutting edge of finance.”

With CoinFLEX withdrawals paused, another issue that has come to light is the repercussions for Smart Bitcoin Cash, also known as SmartBCH.

SmartBCH is an Ethereum EVM and Web3 compatible sidechain operated through CoinFLEX, which provides the bridge between the BCH mainchain and the Smart BCH sidechain.

If CoinFLEX were to go bankrupt, the BCH locked up in SmartBCH could be sold to cover outstanding debts, which could mean the end of the sidechain.

What’s New from Ver

Speaking on the last Bitcoin Cash meeting placeaired on July 3, Ver reiterated that he was “no debt to CoinFLEX” and that the struggling crypto exchange owed him money.

“My statement is probably going to be a little disappointing to the people on the call here, but due to the lawyers who have already been involved in the legal complexities there, all I can say at this time is: is that I have no debt to CoinFLEX.”

Justifying his “disappointing” response, Ver cited the involvement of lawyers and a confidentiality agreement in place, which he intends to keep.

Ver added that he looks forward to the “full, complete and complete truth” of the situation coming out as soon as possible.

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