Cryptocurrency exchange CoinFlex paused withdrawals a few weeks ago and the CEO has come out to reveal one of its debtors.

Mark Lamb, the CEO of CoinFlex, said that Roger Ver, the creator of Bitcoin.com, owes his company $47 million.

Lamb made the revelation during an interview with The Block. Where he also spoke about CoinFlex’s recent $10 million investment from Polychain Capital.

When asked about the relationship between CoinFlex and Bitcoin.com. Lamb says that Ver owes the exchange a “significant amount of money.”

Last week, the cryptocurrency exchange made headlines after it halted withdrawals on its platform. Indicating that one of its investors had failed to pay a $47 million loan.

At the time, CoinFlex says that it would use the funds to “protect customer funds and exchanges.”

Lamb told The Block that Ver is not the investor in question. And he is “confident” that the Bitcoin.com founder will repay the debt.

However, Lamb did not reveal when Ver is expected to repay the debt.

In an emailed statement to The Block, Ver said that he is “not sure” what Lamb is talking about.

“I have no comment on that,” Ver says when asked about his relationship with CoinFlex.

Lamb also said that the exchanges are in talks with Ver to list Bitcoin Cash ABC and Bitcoin Cash SV on its platform.

At the time of writing, CoinFlex is one of the few exchanges. That offer to trade in both Bitcoin Cash ABC and Bitcoin Cash SV.

The exchange has now revealed that the debtor is Roger Ver. Lamb said;

“Roger Ver owes CoinFlex $47 Million USDC. We have a written contract with him obligating him to pay us back any money he loses on his CoinFlex account. He has been in default of this agreement and we have served a notice of default.”

Roger Ver has come out to deny those allegations in a Tweet, stating that the comments by Mark Lamb are false. 

Lamb told Fortune Magazine that he is not aware of what Ver is talking about. And that the exchange does not owe Ver any money. He says;

“He has no funds on CoinFlex. We owe him no funds. He owes us $47 million. We have filed the notice for default and we’ll be doing everything we can to pursue this debt.”

The Recovery Value USD, a cryptocurrency offered by CoinFlex to raise funds, promises a 20% yearly return. The tokens would be available to non-US investors.

According to Lamb, the duration of time when CoinFlex will be able to take withdrawals. Is determined by how much money it raises in the token sale. He states;

“Our goal is to make as much information about what happened public as possible. We want to work with our customers, investors, and the broader crypto community to find a solution. This will help get customer withdrawals back in the meantime. If we can raise these funds in the form of debt, we can solve this problem and eliminate this short-term issue.”

Despite the firm’s ongoing problems, Lamb remains optimistic about the greater cryptocurrency market.

“Crypto winter is thawing, and a new bull market is beginning,” he said. “It will be a long road to recovery for many exchanges, but we believe the industry as a whole will benefit from the lessons learned during this down cycle.”

Lamb also announced that CoinFlex is launching a bug bounty program with rewards of up to $10,000 in FLEX tokens.

The goal of the program is to encourage ethical hackers. To disclose vulnerabilities on the platform so they can be fixed before they are exploited.

“The launch of our bug bounty program is another step in our commitment to building the most secure and trusted platform in the industry,” Lamb states.

CoinFlex is the world’s first physically delivered cryptocurrency futures exchange. It offers Futures Contracts for Difference (CFDs) on Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), Bitcoin Cash (BCH), and EOS.

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James Atkins

I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.