CoinFLEX Files A Lawsuit To Find The Stolen $84 Million

CoinFLEX Files A Lawsuit To Find The Stolen $84 Million

CoinFLEX, a cryptocurrency exchange, has released a statement following an admission of “lack of responsiveness in the last two weeks.” Sudhu Arumugam and Mark Lamb, the two co-founders, disclosed that arbitration proceedings to recover the $84 million losses from a customer had been initiated at the Hong Kong International Arbitration Centre (HKIAC). The company asserted that the person was required to pay as per the agreement but chose not to do so.

The person in issue is not identified by name in the post, but Lamb previously revealed that it was Roger Ver, a proponent of Bitcoin Cash. Ver, however, denied the accusations and blasted CoinFLEX, asserting that the trading platform owed him money.

The co-founders of CoinFLEX noted in the most recent update that it might take up to 12 months for the arbitration proceeding to reach a decision. They are upbeat about the outcome nonetheless, pointing out that the company has a significant advantage because the liability in this instance is a personal one.

“Our lawyers believe that we have a very strong case and have commenced legal actions to recover debts owed to us pursuant to this agreement… His liability to pay is a personal liability which means the individual is personally liable to pay the total amount, so our lawyers are very confident that we can enforce the award against him.”

After Ver allegedly failed to pay $47 million in margin calls, CoinFlex banned withdrawals. It is now negotiating with investors, creditors, and other parties to provide some short-term liquidity for its depositors. It also wants to make certain withdrawals from its platform possible under the “Locked Funds Plan.”

The company is thinking about allowing withdrawals on 10% of balances. There are certain limitations, though. Users will be able to see them on their accounts as “locked funds,” but neither withdrawals nor collateral will be allowed with them. CoinFLEX will momentarily suspend trading all all long and short futures positions against one another on the day this strategy is put into effect. CoinFLEX won’t reopen for trade until the process has been verified.

The founders indicated that the firm must raise or recover cash in USDC due to the uncertainties of the recovery strategy. For this, it will probably need to convert all of the locked assets into USDC, with the exception of FLEX and flexUSD.

”As the funds we are looking to recover are in USDC, we need to dollarize the obligation to confirm the total amount of the liabilities. This will allow us to clearly determine the exact amount of obligations/liabilities for each user.”

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