Genesis, a cryptocurrency loan company, has sued Bitcoin Cash proponent Roger Ver for $20.8 million in unresolved cryptocurrency options. Ver has 20 days to respond to the summons.
According to a court filing issued on January 23, cryptocurrency loan firm Genesis is suing Bitcoin Cash proponent Roger Ver. The corporation is pursuing Ver for “failure to settle bitcoin options transactions” that expired on December 30, 2022. The total value of the options is around $20.8 million.
The action was filed in Manhattan at the New York State Supreme Court. Ver does not appear to have reacted to the lawsuit yet, and Genesis has not provided any updates. Genesis’ British Virgin Islands-based affiliate filed the application.
Ver has 20 days to respond to the summons. If he does not comply, he will be obligated to pay the whole amount of reparations by default.
It’s a mild step in the Genesis drama, which has roiled the sector and indicates greater market instability. Ver, for one, has had his fair share of difficulty recently. In 2014, he renounced his US citizenship to become a citizen of Saint Kitts and Nevis.
Last year, Roger Ver was in hot water for failing to pay $47 million in margin debt to cryptocurrency exchange CoinFlex. The Seychelles-based exchange announced a settlement agreement with Ver.
The arrangement allowed Ver to utilise his “personal creditworthiness” to save his account from being liquidated, even though it had fallen below the maintenance level. Following the insolvency, CoinFLEX filed a lawsuit seeking $84 million in losses.
CoinFLEX, like other cryptocurrency enterprises, was severely impacted by the crypto winter. This legal process is likely to conclude this year, with the decision being rendered in Hong Kong.
Genesis, on the other hand, is still going through bankruptcy processes. According to the firm’s lawyers, the latest news is that there is some hope that it will be able to conclude its disagreement with creditors this week. They also claim that it will be able to exit the Chapter 11 proceedings in late May.
The lender might potentially distribute $3.4 billion in client funds, which would help to alleviate the situation. Acting CEO Derar Islim previously stated that the bankruptcy process will be expedited and efficient, which would reassure creditors.