The CEO of crypto futures exchange CoinFLEX joined Real Vision for an in-depth, live interview to discuss the fallout from pausing customer withdrawals on June 23. As of now, investors still cannot take their money out but Lamb has tried to reassure them that they are pursuing multiple avenues to make withdrawals available again as soon as possible.?
Lamb says that a single account holder – Roger Ver – single-handedly brought the company down.?
- According to Lamb’s tweets, Ver owes CoinFLEX $47m worth of USDC and that his account has gone into default.?
- Ver took to his Twitter account to deny the claims, stating that “not only do I not have a debt to this counter-party, but this counter-party owes me a substantial sum of money, and I am currently seeking the return of my funds,” without naming CoinFLEX directly.
- According to the CoinFLEX blog, “[Ver] had a non-liquidation recourse account. This condition required the individual to pledge stringent personal guarantees around equity and margin calls in exchange for not being liquidated.” ?
- Lamb explained that this is a common practice in both the crypto space and traditional finance industry when dealing with institutional and large whale customers, but admitted that in hindsight, they shouldn’t have let Ver have this type of account. ?
- Real Vision had reached out to Ver for comment but?did not hear back.?
The future of CoinFLEX: The exchange has begun drafting a Whitepaper on a Recovery Value USD (RvUSD) Token Issuance as a possible solution ?
- The terms are still being finalized and Lamb was unable to give an exact dollar figure but expressed confidence in the whitepaper, stating they had a “large group of people interested in this and have a clear path to resolution.”?
- “The goal is to make depositors whole and then come back and aim to emerge as one of the most transparent exchanges,” Lamb said. He also added that the company already has an auditing firm in mind.?
- The whitepaper describes a 20% approach, which Lam said is paid-in-kind. “That’s an increase in the obligation related to a successful recovery of funds from rvUSD,” he explained. “The rvUSD tokens will pay interest in new rvUSD tokens.”?
Raising funds: According to Lamb, CoinFLEX has been speaking to a broad swath of different types of capital providers, including distressed debt buyers, people in the crypto industry, other crypto and traditional businesses, existing depositors, and existing and potential investors, including a buyer wanting to buy the entirety of the debt.?
- “We're continuing to gain information from this process, and all of these things ultimately are aiding our process and our ability to raise this capital.”?
- Lamb remains optimistic, saying that “each day I’m feeling more confident”.?
- Lamb stated that CoinFLEX will go public next week with the total dollar value number they’re looking to raise. ?
