Cryptocurrency

Roger Ver says he can afford to pay Genesis $20M but insolvency changes agreement

Bitcoin Cash evangelist Roger Ver said: January 25th He can afford to pay the money he allegedly owes Genesis, but he may not have to.

On Monday, a Genesis subsidiary invoked claims worth more than $20.86 million for options that Ver allegedly failed to settle in late December.

Ver said today that he has “sufficient cash on hand” to pay the amount and is willing to pay the company what it owes.

But he also said the deal with Genesis requires the company to remain solvent. Ver said Genesis could not guarantee its solvency beyond mid-2022.

Ver wrote in a Reddit post:

Genesis was required by our agreement to remain solvent — because Genesis cannot ask a client to play a game where the client loses in the head and Genesis wins in the back. . It appears that Genesis has been below the solvency line since at least June of last year.

Ver has primarily argued that there is a discrepancy between the valuation of Genesis’ customer collateral and its own digital assets. He said the refusal led him to file a claim that was confirmed this week.

Notably, Ver doesn’t mention Genesis’ recent bankruptcy filing. The filing only impacted the company’s lending division and had no impact on other business areas. As such, Genesis does not appear to be completely insolvent, which will likely affect Ver’s case in court.

If Ver does not respond to the allegations within 20 or 30 days of the January 23 subpoena, a default judgment will force Ver to pay the amount demanded by the company. It’s unclear if Ver has filed a legal response to the accusations announced Monday.

Ver was previously sued by CoinFLEX, another struggling cryptocurrency company, in June 2022. There have been no developments in the case since arbitration began in Hong Kong last summer.

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