CoinFLEX co-founder and CEO Mark Lamb said that Roger Ver decided to betray CoinFLEX associates and users.
Lamb posted a video recounting his thoughts on CoinFLEX being nearly bankrupted by Ver, adding that brutal lessons have been learned.
CoinFLEX restructuring approved
In June 2022, CoinFLEX said that Ver owed it $47 million due to accumulated margin losses on its trading account. Lamb explained that the company has a written agreement with Ver that it personally guarantees negative trade balances.
The deal required Ver to top up his balance, but he failed to do so, leaving a black hole in the exchange’s books. The Bitcoin Cash advocate denied any wrongdoing and turned the tables, saying CoinFLEX owes him money.
“Recently, some rumors have spread that I have defaulted on a debt with a counterparty. These rumors are false. Not only do I not owe 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.”
In July 2022, the exchange revised its initial estimate to $84 million owed, adding that it seeks to recover the money through the courts.
The following month saw the swap file for the restructuring, which was approved by the Seychelles Court some seven months later in March.
The deal will see Lamb partner with Three Arrows Capital co-founders Su Zhu and Kyle Davis in rebranding CoinFLEX to OPNX, an exchange that specializes in tokenizing bankruptcy claims.
Lamb tells his story
With the restructuring approved and winning “more than 20 different court cases” against Ver, Lamb took to social media recently to explain what happened.
On the matter of lending money to Ver/financing his trading losses with client funds, the CoinFLEX CEO said that this was not what happened, implying that the incident boiled down to deceptive behavior on Ver’s part.
He explained that it is standard practice for some crypto exchanges to have “manual margin” accounts for VIP entities. These types of trading accounts provide a grace period, such as one day, before a losing account is liquidated, beyond your margin limit.
It is common for manual margin accounts to be secured by external guarantees, liens, personal guarantees, and other forms of support.
Discussing the allegations of lax risk management, Lamb said he had a written manual margin agreement with Ver, which he breached.
Furthermore, he suggested that the circumstances were hard to swallow, given that the pair had been close friends for 11 years, having met in the early days of Bitcoin.
Lamb went on, saying that in the course of building CoinFLEX and developing its product line; he often consulted with Ver as a mentor and investor. Over time, Ver ended up owning more CoinFLEX shares than Lamb.
“I thought it was a deeply involved business partner that we could trust…”
Lamb said that even though CoinFLEX owes much of its history and early success to Ver, it “decided to betray the trust of so many, many people.”
This post CoinFLEX Co-Founder Accuses Roger Ver of Treason in Near-Bankruptcy Saga
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