Crypto Futures Exchange CoinFLEX To Lay Off Employees As It Fights Legal Battle With ‘Bitcoin Jesus’
Struggling crypto derivatives exchange CoinFLEX announces employee layoffs amid legal battle with ‘Bitcoin Jesus’.
in a new blog post, CoinFLEX says it is laying off a significant number of employees across the board to reduce overhead.
“Unfortunately, we have had to lay off a significant number of the CoinFLEX team across all departments and geographies. of the remaining team focuses on products and technology, which remain the core of our business.
We will monitor costs to ensure we are operating as efficiently as possible and scaling as volumes return. The intention is to remain the right size for any entity considering a potential acquisition or partnership opportunity with CoinFLEX.
CoinFLEX says it is do the experience financial problems because a client, known as “Bitcoin Jesus” for his first plea for the crypto king, failed to repay a substantial debt.
The crypto firm says it is currently in arbitration with the client in Hong Kong to potentially recover funds after they were unable to liquidate its positions.
“We tried to liquidate his account cautiously using exchange counterparties, but because the positions were so large they involved slippage like any large order or series of large orders could reasonably create.
Throughout the process we kept the individual fully informed and he had cooperated with us and promised to pay or increase the guarantee to cover the shortfall, but in the end the promise turned out to be void of meaning.
We started arbitration at HKIAC [Hong Kong International Arbitration Centre] for the recovery of that $84 million because the person had a legal obligation to pay under the agreement and refused to do so. Their liability to pay is a personal liability, which means that the individual is personally liable to pay the full amount, so our lawyers are very confident that we can enforce the award against them.
According to CoinFLEX CEO Mark Lamb, Roger Ver, also known as Bitcoin Jesus, must crypto futures trade $47 million USD Coin (USDC) stablecoin alone.
“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 a notice of default.
However, Ver is deny the allegations and instead says that CoinFLEX owes him money.
“Recently there have been rumors that I have defaulted on a debt to a counterparty. These rumors are false. Not only do I have no debt to this counterparty, but this counterparty owes me a substantial sum of money, and I am currently requesting the return of my funds.
In June, CoinFLEX stopped customer withdrawals, citing market volatility and debt owed to them as reasons.
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