• Genesis falls victim to FTX crash
• Genesis Global Capital International files lawsuit against Roger Ver
• Millions requested
Genesis is the latest victim of the crypto winter
The bankruptcy of the crypto exchange FTX from industry star Sam Bankman-Fried continues to draw its circles. With Genesis, another company that was already in trouble due to the crypto winter and the debacle surrounding FTX had to file for Chapter 13 bankruptcy. “While we have made significant progress in refining our business plans to address liquidity issues caused by the recent extraordinary challenges in our industry, including the failure of Three Arrows Capital and the bankruptcy of FTX, a court reorganization is putting the most effective way to preserve assets and achieve the best possible outcome for all Genesis stakeholders,” said interim CEO Derar Islam in an announcement. “We greatly appreciate the continued patience and partnership of our customers as we work toward an equitable resolution.”
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Genesis subsidiary sues for damages
The parent company Genesis Global combines a number of sub-units that are distributed in the USA, Great Britain, Singapore and the Caribbean. According to the company, a subsidiary of the crypto lender, Genesis Global Capital International (GGCI), which is based in the British Virgin Islands, specializes in spot trading and acts as a client for digital assets as derivatives.
On January 23, GGCI filed a lawsuit against well-known crypto advocate Roger Ver in the New York State Supreme Court in Manhattan. The investor is one of the early supporters of Bitcoin, but is now particularly in favor of Bitcoin Cash, a fork that emerged from the crypto veteran in 2017. Ver, also known in the community as “Bitcoin Jesus” according to CoinDesk, is now accused of failing to settle $20 million in expired crypto options, the filing shows. These are said to have been due on December 30, 2022. Now the Genesis subsidiary is demanding damages. The exact value of the payment will be determined at the negotiation, but will be at least $20.9 million, CoinDesk quotes the document as saying.
Similar conflict between Ver and CoinFLEX
So far, Ver has kept a low profile when it comes to GGCI’s allegations. However, the case is reminiscent of allegations made by Mark Lamb, CEO of the crypto trading platform CoinFLEX, in June 2022. At that time, Ver defended himself via Twitter against rumors that he owed money to a “counterparty”. “Not only do I not owe this counterparty, instead this counterparty owes me a substantial sum of money and I am in the process of requesting my money back,” the Bitcoin Jesus tweeted.
Recently some rumors have been
spreading that I have defaulted on a
debt to a counter party. These rumors
are false. Not only do I not have a debt
to this counter-party, but this counter-
party owes me a substantial sum of
money, and I am currently seeking the
return of my funds.– Roger Ver (@rogerkver) June 28, 2022
Lamb responded shortly thereafter and clarified what the rumors that Ver had made public were all about. “Roger Ver owes CoinFLEX 47 million USDC,” the CoinFLEX boss tweeted. “We have a written contract with him that requires him to personally vouch for any negative equity in his CoinFLEX account and to regularly replenish margin. He has defaulted on that agreement and we have served him with a reminder.”
Roger Verowes CoinFLEX $47 million USDC. We have a written contract with him obligating him to personally guarantee any negative equity on his CoinFLEX account and top up margin regularly. He has been in default of this agreement and we have served a notice of default.
– Mark Lamb ? (@MarkDavidLamb) June 28, 2022
CoinFLEX is apparently daring to start over with 3AC founders
In July 2022, the Seychelles-based company, which was experiencing financial difficulties, announced restructuring measures. In mid-January 2023, it was announced that CoinFLEX was working on a new crypto exchange with Zhu Shu and Kyle Davies, the founders of the now bankrupt crypto hedge fund Three Arrows Capital (3AC). The plans emerge from a leaked document that promises the launch of the new platform.
It is not known whether Ver CoinFLEX actually owes money and whether this has been repaid in the meantime.
Editorial office finanzen.net
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