Crypto lending firm Genesis has filed a case against Bitcoin Cash proponent Roger Ver for $20.8 million in volatile crypto options. Ver has 20 days to respond to the summons.
Crypto lending firm Genesis is taking on bitcoin cash proponent Roger Ver, according to a court filing published on January 23. The company is going after Ver for “failure to settle cryptocurrency options transactions” that were due to expire on December 30, 2022. The total amount of the options is approximately $20.8 million.
The lawsuit was filed in New York State Supreme Court in Manhattan. It seems that Ver has not yet responded to the matter, and Genesis has also not provided any update on the matter. The British Virgin Islands-domiciled affiliate of Genesis submitted the filing.
Ver has 20 days to respond to the summons. If he fails to do so, he will have to pay the total cost of compensation in default.
This is a moderate development in the Genesis saga, which has shaken the industry and suggests more market uncertainty. Ver, on his part, has seen a lot of trouble in the recent past. He gave up his United States citizenship in 2014 to become a citizen of Saints Kitts and Nevis.
Coinflex also sued for failure to pay margin loans
Roger Ver was also in hot water last year for failing to pay back $47 million in margin loans to cryptocurrency exchange Coinflex at the time. The Seychelles-based exchange said it has tied up with Ver.
The arrangement allowed Ver to use his “personal creditworthiness” to prevent the liquidation of his account, even though it had fallen below the maintenance level. Coinflex filed a lawsuit focused on recovering $84 million in damages following the liquidation.
Coinflex, like other crypto companies, was hit hard by the crypto winter. This litigation process is expected to end this year, with the judgment in Hong Kong.
Genesis showing confidence in handling bankruptcy
As for Genesis, it continues to struggle in its bankruptcy proceedings. The latest news is that there is a certain amount of confidence that it will resolve its dispute with creditors this week, according to the firm’s lawyers. They also say it could exit Chapter 11 proceedings in late May.
The lender could potentially provide $3.4 billion in customer funds, which would go some way toward easing the conflict. Acting CEO Derar Islam had earlier said the bankruptcy process would be quick and efficient, which would pacify creditors.
disclaimer
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.