It has been revealed that Bitcoin Cash’s Roger Ver is the high net-worth (HNI) individual that owes CoinFLEX $47 million, leading to the withdrawal issues faced by the exchange and announcing plans to issue a recovery token to help raise funds to cover the $47 million deficit.
Insider Reveals Identity of HNI
The news came to light after Terra, and crypto Twitter community member FatManTerra suggested that it was Roger Ver who owed CoinFLEX $47 million. The user also added that CoinFLEX allowed Ver to run a deficit because he gave a personal guarantee that he would pay back the exchange. He stated that a verified insider confirmed the information, revealing,
“A verified insider has confirmed that the “high net worth individual” who owes CoinFLEX money is Bitcoin Cash advocate & CoinFLEX shareholder Roger Ver. Ver had a long on BCH, and the platform allowed him to run a deficit because he personally guaranteed he would pay them back.”
CoinFLEX CEO Confirms Ver As Counterparty
After FatManTerra’s revelation about the counterparty in the entire CoinFLEX debacle, CEO Mark Lamb took to Twitter to confirm that it was indeed Roger Ver who owed CoinFLEX 47 million USDC. He further stated that CoinFLEX had a written contract with Ver, which obligates him to personally guarantee any negative equity on his CoinFLEX account. Lamb stated,
“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.”
“He is denying that the debt pertains to him, and so we felt the need to clarify to the public that yes – the debt is 100% related to his account. Roger Ver, a citizen of the European Union who we believe, has significant assets in the US, UK, and other relevant jurisdictions.”
Roger Ver denies Rumors
Shortly after Mark Lamb’s post on Twitter, Ver himself took to Twitter, denying the rumors that he had defaulted on any debt. In fact, he alleged that CoinFLEX owed him a substantial sum of money, which he was trying to recover.
“Recently, some rumors have been spreading that I have defaulted on a debt to a counterparty. These rumors are false. Not only do I not have a debt to this counterparty, but this counterparty owes me a substantial sum of money, and I am currently seeking the return of my funds.”
FatManTerra reached out to Ver, asking for clarification, but has not seen any response yet.
The Developments So Far
The entire fiasco began after CoinFLEX, which had been facing recent withdrawal issues, announced that it was issuing a recovery value USD (rvUSD) to address the aforementioned withdrawal problem. CoinFLEX revealed that the recovery token launch is the result of an outstanding debt owed to the exchange by a high-net-worth individual who was facing liquidity issues due to the recent crash that took place in the crypto markets. The exchange revealed it is expecting withdrawals to resume as early as 30th June, depending on the rvUSD issuance.
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