Bitcoin Cash Sinks 7% As Its Biggest Advocate Is Accused Of Default

Bitcoin Cash (BCH) prices sank on Wednesday after Roger Ver, a major advocate of the blockchain, was accused of owing crypto exchange CoinFlex about $47 million. 

In a Twitter statement, CoinFlex CEO Mark Lamb disclosed a written contract with Ver, which obligates the latter to personally guarantee any negative equity. Lamb accused Ver of defaulting on the agreement. Roger Ver, the former CEO of Bitcoin.com, is a big advocate for Bitcoin Cash.

Since the accusations by Lamb, BCH’s prices have tanked by 7% to reach $104. 

Bitcoin Cash Price Plummets

Roger Ver- the CEO of Bitcoin.com is one of the biggest promoters of Bitcoin Cash ever since it was hard forked from Bitcoin. Ver believed that Bitcoin should be a peer-to-peer transaction system rather than just being a store of value. The position that caused the loss for Ver was a leveraged 600-800K BCH long. 

As a result, BCH has fallen 7% to reach the price of $104.

Roger Ver Hits Back

Taking to Twitter, Ver, denied Lamb’s claims of owing debt. Moreover, he accused CoinFLEX of owing him a substantial sum of money. He revealed that he is seeking the return of his funds. 

Expanding on his allegations, Mark Lamb reaffirmed that the debt belongs to Ver. Moreover, Lamb denied any allegations of owing any debt to Roger Ver. 

The back and forth has drawn criticism for both Ver and CoinFLEX. Ver has faced criticism for taking advantage of his status as a shareholder in CoinFLEX. 

Meanwhile, Cornell professor and Ava Labs CEO, Emin Gün Sirer, criticized CoinFlex for publicly revealing client details. He was joined in this criticism by others who criticized the nature of CeFi. Furthermore, CoinFLEX launched a new token rvUSD, which guaranteed a 20% annual return. 

CoinFLEX had previously stopped all withdrawals citing protective measures. The newly launched token is considered a part of the plan to restart the withdrawals. 

The scheme has been labeled a Ponzi scheme by many, including crypto influencers like Noah Smith. 

 

Nidhish is a technology enthusiast, whose aim is to find elegant technical solutions to solve some of society’s biggest issues. He is a fim believer of decentralization and wants to work on the mainstream adoption of Blockchain. He is also big into almost every popular sports and loves to converse on a wide variety of topics.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.