roger ver and mark lamb

The CoinFLEX drama keeps unfolding after the exchange’s Chief Executive Officer, Mark Lamb, revealed who the mysterious counterparty that reportedly led to the firm’s insolvency was.

In a tweet published yesterday, Lamb stated that Roger Ver is the person who owns the exchange a sum of approximately $47 million and the reason why CoinFLEX has been forced to pause withdrawals for its users after Ver’s account went into negative territory.

Ver is a well-known figure in the crypto industry who invested in Bitcoin (BTC) back when just a handful of people knew about it. His views about the digital asset have earned him the pseudonym “Bitcoin Jesus”.

Since Ver entered the ecosystem, he has been involved in many prominent projects including Bitpay, Kraken, and Bitcoin.com acting as a promoter, investor, and evangelist for the masses.

According to Lamb, CoinFLEX wrote a contract where the company obligated Ver personally to guarantee the repayment of the negative equity in his account but noted that he has already defaulted on this agreement and has been served a notice of default.

Ver responded in a tweet saying that rumors concerning his default on a debt to a counter-party were false and backfired by stating that it is the counter-party – probably referring to CoinFLEX – who owns him a “substantial” sum of money.

Before Lamb revealed that Ver is the counterparty behind the delinquent loan, CoinFLEX referred to the account holder as a “high integrity person of significant means”.

CoinFLEX claims that Ver is the only account holder with negative equity and has vouched to be more transparent with its finances by “pioneering a new model of futures margining” that displays the status of all futures positions so they can be monitored every hour.

Your capital is at risk.

FLEX Token Up More Than 100% in The Past 24 Hours

Interestingly, CoinFLEX’s native crypto token FLEX is reacting positively to the controversy as its value is rising 135% in the past 24 hours at $3.03 per coin according to data from CoinMarketCap.

Trading volumes during that same period have surged nearly 600% to $111.6 million. As a result of this sharp uptick, FLEX is trimming its yearly losses to 48.6% compared to 87% the token had lost just hours ago.

Just yesterday, the token hit its lowest level since the year started at around 78 cents on the dollar after CoinFLEX revealed a plan to tokenize its bad debt to raise enough capital to resume withdrawals and restore the exchange’s regular operations.

The plan consists of issuing a synthetic token called rvUSD backed by the exchange’s bad debt. The crypto community in social media has mocked the plan by stating that the letters “rv” stand for “Roger Ver” and not “recovery value” as the exchange claims.

Is Roger Ver Responsible for FLEX’s Uptick?

flex price chart 7d

FLEX/USD price chart – Source: CoinMarketCap

One plausible explanation as to why the price of FLEX is rising this morning is that the proposed sale of the rvUSD token, whose purpose is to shore up the firm’s finances, has gone well.

If that is the case, this would allow CoinFLEX to resume withdrawals and restore the public’s confidence even though it is clear that its risk management practices were not adequate as a single client – whether it was Roger Ver or whoever – managed to destabilize the platform by defaulting on a loan.

According to CoinFLEX, rvUSD tokens will be made available to the investment community until 1 July. Only non-USD accredited investors are eligible to participate in the offering and the minimum subscription is USDC 100,000. See rvUSD whitepaper

As an added incentive, the first three $11.75 million tranches will be sold at a discount of 94, 96, and 98 cents on the dollar respectively. Holders of these rvUSD tokens will be entitled to receive a 20% annual percentage yield.

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