Cryptocurrency Exchange CoinFlex calls out investor over $48 million debt
The renowned CoinFlex responsible for digital asset Exchange is seen having a financial rift with a popular cryptocurrency investor; Roger Ver.
WHAT IS COINFLEX/ WHO IS ROGER VER
CoinFlex which calls itself the home of crypto yield is a digital exchange for crypto assets. The exchange aims to be a prominent crypto exchange.
Who is Roger Var?
Roger Ver, who is also aliased as “Bitcoin Jesus”, is a cryptocurrency investor and one of the earliest believers of crypto. He grew in popularity as one of the most controversial crypto investors. The investor has laid prints of investments on Various crypto and Blockchain Projects like:
Ver in 2017 started advocating for Bitcoin cash.
His views and clashes with government authorities earned the controversial figure his nickname “Bitcoin Jesus”
Earlier on Tuesday, CoinFlex issued a new token in other to generate funds for customers’ withdrawals after it paused withdrawals for some time. This was caused by a failed recovery of a massive debt by one of its clients. The identity of this client was hidden initially until it was recently put out to be Roger Ver.
The exchange said it would provide a Cryptocurrency valued at $47 million, and issuance of 20% interest, which is named “Recovery Value USD”(rvUSD)
How it happened
The Chief Executive Officer, CoinFlex, Mark Lamb, tagged Roger Ver as the investor who failed to pay a margin call of $47 million of stablecoin USDC.
Margin Calls: Typically, a margin call is initiated when an investor(in this case, Roger Ver) has to commit greater funds to avoid incurring losses on trades made with borrowed cash.
Roger Ver didn’t pay his margin call, which was in the form of USDC(a stablecoin whose price is pegged to the United States Dollar: USD)
CoinFlex CEO revealed earlier in the week that Roger Vers’s account went into “negative equity”.(identity was unknown at this time)
Vers position would have been automatically liquidated by CoinFlex but due to certain agreements with the exchange, CoinFlex wasn’t permitted to do so.
In a statement issued by Lamb, CEO of CoinFlex on Twitter, he said that Ver had an existing track record of topping up margin and meeting margin requirements in accordance with the existing agreement.
The CEO added that they’ve had talks concerning the situation targeted at resolving it.
Furthermore, Ver denies the statement and dismisses the claim that he was the investor behind the debt.
The CEO still maintained that the debt is “100% related” to Bitcoin Jesus and denies that any debt was owed Ver.
Lambs highlighted that it is unfortunate that Ver has to employ such tactics to deflect from his responsibilities.