Bitcoin Cash (BCH) advocate and so-called “Bitcoin Jesus,” Roger Ver, has broken his silence on his newly received summons from GGC International.
The investor said that while he has “sufficient funds” to pay his stated debts, the details of his contract with Genesis make things more complicated.
Will Roger Ver Pay Up?
In response to a Reddit post on the matter, Ver answered that he had the funds to pay all sums “allegedly owed,” and was willing to pay “what I actually owe.” However, the newly revealed financial condition of the crypto broker means he may owe nothing at all.
“Genesis was required by our agreement to remain solvent — as Genesis can’t ask its clients to play a “heads clients lose, tails Genesis wins” game,” wrote Ver. “It appears that at points since at least last June Genesis dipped under the solvency line.”
Genesis officially filed for bankruptcy last week – an outcome expected by many after the firm froze withdrawals in November. Genesis said at the time that it lost $175 million inside of FTX when the exchange went under. More recent records, however, suggest Genesis is owed $226 million and is FTX’s largest unsecured creditor.
The lender’s financial troubles began in June with the collapse of the crypto hedge fund Three Arrows Capital. Digital Currency Group (DCG), the parent company to Genesis, said at the time that it provided financial aid to Genesis to help it navigate the fallout, including $1.2 billion of support.
Cameron Winklevoss, the co-founder of Gemini, later contested this claim, arguing that the $1.2 billion 10-year promissory note was a “complete gimmick.” He added that Genesis, DCG, and its CEO Barry Silbert had misrepresented the financial condition of Genesis to Gemini.
Ver made similar claims on Wednesday, stating that Genesis had refused to clarify its financial information with him when he asked, “and instead chose to file suit.”
“I look forward to an explanation from Genesis as to how exactly they valued some of the questionable line items, including what appear to be discrepancies between the valuation of customer collateral and their own digital assets,” he continued.
The Genesis Lawsuit
On Tuesday, Genesis summoned Ver to repay $20 million in damages for certain cryptocurrency options trades that were supposed to settle on December 30. Should he fail to answer the summons within 20 days of the filing, Ver will be required to pay $20,869,788 by default, plus Genesis’s attorney’s fees.
Ver also ran into legal trouble with crypto exchange CoinFlex in 2022, which has sued him for $84 million after not paying his margin debt to the exchange. The exchange had made a special arrangement with Ver such that his collateral wasn’t automatically liquidated when its price fell below a standard threshold. This ultimately pushed it to freeze withdrawals, however.
Ver has aggressively denied owing CoinFlex money, rather insisting that the exchange, owes money to him.