Genesis, the bankrupt cryptocurrency lending firm linked to the ongoing FTX crisis, has sued Roger Ver, a key Bitcoin Cash (BCH) backer, due to claims of unsettled cryptocurrency options.
GGC International filed the lawsuit against Ver in the New York State Supreme Court revealed. GCC is a subsidy of the now-defunct crypto firm. It alleges that Ver failed to settle transactions for the crypto assets which expired in late December.
Named “Bitcoin Jesus,” Ver took to Reddit to explain his reason for the incident.
He said in his post: “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.”
Explaining further, Ver said that Genesis “dipped under the solvency line” and that he asked the firm for solvency assurances. Genesis provided financial information that “had been called into question by recent events,” he added, referencing the recent bankruptcy.
He added: “When I asked Genesis to clarify the financial information they had provided me, they refused, and instead chose to file suit.”
Lawsuit Details
According to the lawsuit, Ver must answer the summons after the required 20-day period. He has not responded to the matters and will be forced to pay the entire sum for failing to do so.
The news comes after CoinFLEX chief executive Mark Lamb alleged Ver had defaulted on $47 million in USD Coin (USDC). Ver indirectly denied the accusations in late June.
The news comes after Genesis’ parent company, the Digital Currency Group (DCG), declared Chapter 11 bankruptcy earlier this week.
It also launched restructuring efforts for its crypto operations amid a massive row with Gemin’s Tyler and Cameron Winklevoss, who slammed Genesis over the collapse of its Earn programme.
