Crypto trading platform CoinFLEX has detailed its strategy to combat the company’s current liquidity crisis, which for almost three weeks has prevented users from withdrawing funds.
In a blog post Saturday, co-founders Sudhu Arumugam and Mark Lamb announced that the company has entered arbitration in Hong Kong to recover $84 million in losses from a “large individual customer,” who, late last month, CoinFLEX claimed was prominent Bitcoin evangelist Roger Ver.
The customer in question allegedly defaulted on a massive position last month and failed to honor a contract with CoinFLEX requiring him to guarantee any negative equity on his account. CoinFLEX has previously stated that it was this single customer’s failure to cover a debt that forced the company to freeze withdrawals platform-wide in late June.
Arumugam and Lamb stated they expect a verdict in the arbitration case to take up to 12 months. Because the liability in question is a personal one, though, the two are optimistic the case will result in a substantial recuperation for CoinFLEX. “The individual is personally liable to pay the total amount,” wrote Arumugam and Lamb, “so our lawyers are very confident that we can enforce the award against him.”
Though Saturday’s blog post never once referred to Ver by name, Lamb recently stated outright that Ver—an early Bitcoin adopter and longtime advocate known to many as “Bitcoin Jesus”— is the customer in question. Ver shortly thereafter denied the allegations, claiming instead that CoinFLEX owed him money.