CoinFLEX takes legal action against Roger Ver for the repayment of a margin call

CoinFlex, a derivatives exchange, has announced that it will take legal action against Roger Ver after the latter refused to pay back a $47 million margin call on a leveraged position secured by FLEX currency.

Ver, a proponent of bitcoin and an early investor in cryptocurrencies, had less collateral than required to cover his leveraged position.

This happened after the TerraUSD stablecoin meltdown put pressure on other major cryptocurrencies.

A customer owing CoinFLEX $47 million, therefore the company announced last month that it was halting all FLEX coin trading in perpetual swaps and spot trading.

CEO Mark Lamb reassured the public that the counterparty was neither the troubled Singaporean hedge fund Three Arrows Capital nor a lender, excluding BlockFi and Celsius. Later, it was discovered to be Ver.

Ver was a customer with a manual margin, which meant that he was given a grace time to provide more collateral as opposed to typical users who are instantly liquidated when their leverage ratio drops below a particular threshold.

Ver had requested that the corporation liquidate his investment, but he had broken his pledge to furnish the money necessary to take delivery of the futures contracts.

Even after selling his stock, CoinFLEX still had a $84 million disadvantage.

Ver is being sued by the corporation because he is personally responsible for the $84 million and refuses to make the payment.

The legal team for CoinFLEX thinks the business has a good case. Before a decision is handed down in Hong Kong, the legal process is anticipated to take around 12 months.

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