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Roger Ver Spars, The Early Bitcoin Adopter Is In Dispute With Crypto Exchange CoinFlex Regarding Margin Call

source-logo  thecoinrepublic.com 30 June 2022 03:57, UTC

The crypto market recently has been witnessing a public dispute between a longtime crypto investor and a digital asset exchange. 

On Tuesday, a crypto exchange, CoinFlex, announced that Roger Ver is the counterpart who in a margin call failed to pay $47 million of stable coin. Earlier, the crypto exchange shared that a liquidity issue had resulted in the exchange halting its withdrawals.

Mark Lamb, the CEO of CoinFlex tweeted saying that the company has served Ver. Ver is among the individuals who promoted Bitcoin and has also invested in the exchange. 

On the other hand, Ver in an email told Bloomberg that he does not own a deft of CoinFlex. He then tweeted without mentioning the name of CoinFlex and said that some party was spreading rumors that he has been a defaulter on a debt to a counterparty.

Ver completely dismissed these rumors stating that a substantial amount is owned by the counterparty to him, revealing that he is seeking the returns for his funds. Responding to Ver’s tweet, Lamb said that the information in his tweet is incorrect and there are no funds for him with CoinFlex. 

A wide-based cryptocurrency sell-off and the meltdown of prominent tokens have prompted the ripple effects all over the industry. The primary lenders like Babel Finance and Celsius Network have frozen withdrawals. Furthermore, the crypto hedge fund, Three Arrows Capital, is also witnessing major liquidity issues that have impacted the investors.

Recently CoinFlex announced a plan to make up for the shortfall caused by the default by issuing a new token that focuses on offering a 20% return annually. The resumption of withdrawals focused on June 30 will depend on the demand level for these new tokens.

CoinFlex is a smaller crypto exchange that focuses on derivatives trading. According to its website, the exchange has less than $200 million in total value locked.

CoinFlex in an update earlier said that it usually believes in liquidating any kind of negative equity account, the client at issue had a non-liquidation recourse account. No other accounts are in negative equity, it added.

thecoinrepublic.com