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.
- VanEck Registers Lido Staked Ethereum Trust in Delaware, LDO Up 7%
- Fed’s Lorie Logan Urges Caution on Further Rate Cuts Citing Inflation Risks
- Nasdaq-Listed Fitell Adds Pump.fun’s PUMP To Supplement Solana Treasury
- FG Nexus to Tokenize Stock on Ethereum as SEC Weighs 24/7 Onchain Stock Trading
- Bitcoin Still Undervalued, JPMorgan Forecasts Rally to $165,000
- Pi Network Price at Risk of Another Crash as Mysterious Whale Stops Buying
- Solana Price Eyes $360 After Bullish Retest As VisionSys AI Deploys $2B Treasury Strategy
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
