On June 27th, 2022 a Twitter account by the name of @FatManTerra revealed that an insider within CoinFLEX was allowed to borrow $47 million of uncollateralized USDC as a loan. CoinFLEX stated on June 23rd that their platform would be halting all withdrawals due to the current market volatility.
Almost a week later, in order to fund withdrawals for their customers, CoinFLEX announced that they are now turning this insider’s debt into a token that would then be sold to the general public while offering a 20% annual yield with the ticker rvUSD.
@FatManTerra later announced a tip from a source familiar with the situation that Roger Ver is the insider who owes CoinFlex the $47 million in USDC. Ver was a huge advocate for Bitcoin and later forked the network with his own rendition known as B-Cash. He claimed in a tweet that he was not the borrower of $47 million in USDC and that the rumors were false.
Ver stated that he was also seeking to have his funds returned.
Within an hour of Ver’s tweet, the CEO of CoinFLEX, Mark Lamb, confirmed in a tweet thread that Ver is the borrower and that the company has served a notice of default.
Lamb clarifies that CoinFLEX does not owe any debts to Ver and that Ver’s previous statement is blatantly false. “It is unfortunate that Roger Ver needs to resort to such tactics in order to deflect from his liabilities and responsibilities,” Lamb concluded.
Others within the space also shared their views on Ver's recent behavior.
Along with making comments on CoinFLEX's judgement for lending funds to Ver.