Drama Brewing at CoinFLEX

Market Meditations | July 1, 2022

Sam Bankman-Fried mentioned that many exchanges will fail after recently bailing out Voyager and BlockFi. He is saying that some exchanges are already “secretly insolvent” and past savings. Today, we look toward the exchange CoinFLEX. They are saying that a bitcoin.com executive owes them $47 million!

  • CoinFLEX CEO Mark Lamb tweeted that bitcoin.com executive chairman Roger Ver has debt which forced the exchange to halt withdrawals last week.
  • CoinFLEX issued a new token – rvUSD – to stabilize their balance sheet. Their goal was to raise at least $47 million.
  • Lamb said the token will have a 20% yield. They also mentioned that if the $47 million is raised then users would be able to withdraw their funds.
  • Roger Ver originally denied this claim, going as far as to say that the exchange actually owed him a substantial amount of money.
  • Lamb responded that the debt is 100% related to Ver’s account and that the company doesn’t owe Ver anything.

This is a messy situation for everyone involved. If Ver owes the money, then he ought to pay it. At the same time, it is slightly interesting – and perhaps not best practice – for an exchange to be set to default if one party refuses to pay their debts.