CoinFLEX trading platform today announcement limited withdrawals for customers after freezing them last month amid a dispute with prominent crypto investor Roger “Bitcoin Jesus” Ver.
The company said in a blog post on Thursday that users can now withdraw 10% of their funds, but not the platform’s stablecoin, flexUSD, until further notice.
“We will allow limited withdrawals for all users this week and continue to work with laser focus on our recovery plans,” the company said.
CoinFLEX last week said he was entering arbitration in Hong Kong to recover $84 million in losses, which he attributed to a “large individual client”. The company had previously identified this individual as famed Bitcoin evangelist and angel investor Roger Ver, but did not name him in the arbitration announcement.
The platform last month frozen withdrawals– joining a long list of companies hammered by a combination of questionable business practices and financial uncertainty due to a brutal bear market.
CoinFLEX’s story, however, is a bit different: the company complaints Ver, an early Bitcoin investor turned Bitcoin Cash supporter and arguably one of the most recognizable names in crypto, owes them $47 million.
CoinFLEX CEO Mark Lamb said Ver was in default on an agreement to return CoinFLEX money he owed in the form of the USDC stablecoin, and that’s why the platform is struggling and had to stop withdrawals. Ver denies the allegation and claims that CoinFLEX actually owes him money, which Lamb also denies.
Roger Ver owes CoinFLEX $47 million USDC. We have a written contract with him requiring him to personally guarantee any negative balance in his CoinFLEX account and to top up his margin regularly. He has been in default of this agreement and we have served notice of default.