Bitcoin Cash (BCH) advocate and veteran of the crypto space Roger Ver is being sued by a wholly-owned unit of bankrupt lender Genesis for allegedly failing to settle options trades.
According to a filing at the New York State Supreme Court, Ver has 20 days to answer a complaint from GGC International regarding his alleged failure to settle $20 million worth of cryptocurrency options transactions.
The complaint in the filing states,
“This action seeks the following relief: 1) a judgment awarding Plaintiff with money damages for Defendant’s failure to settle cryptocurrency options transactions that expired on December 30, 2022, in an amount to be determined at trial but no less than $20,869,788; and 2) an award of Plaintiff’s costs, expenses, and reasonable attorneys’ fees incurred in bringing this action.”
Ver has since responded to the lawsuit via a Reddit post admitting that he owes Genesis the money, but that Genesis violated the terms of the agreement by not remaining solvent, and potentially being dishonest about their solvency.
“I have sufficient funds on hand to pay Genesis the sums allegedly owed, and I’m happy to pay what I actually owe. However, 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. It appears that at points since at least last June Genesis dipped under the solvency line. Last June, I asked Genesis for assurances of their solvency. In return, Genesis provided me with financial information that has been called into question by recent events.
When I asked Genesis to clarify the financial information they had provided me, they refused, 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. I had hoped to obtain this information from them quickly and amicably, as I value our relationship, but it appears I will now be forced to get to the bottom of this in discovery.”
Genesis filed for bankruptcy earlier this month, and is in the process of recovering its creditors’ assets.
According to Genesis, GGCI is a British Virgin Islands company that’s wholly-owned by Genesis Bermuda Holdco Limited. It executes spot trading activity and “enters into derivatives referencing digital assets as a principal.”
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