CoinFlex said that it has taken legal action to recover $84 million in losses from a single customer and is in talks to sign a joint venture with another crypto exchange in a bid to revive its fortunes, Bloomberg News reported. The crypto exchange paused withdrawals on its platform last month after a counterparty, which it later identified as longtime crypto investor Roger Ver, failed to repay $47 million from a margin call. CoinFlex said in a blog post on Saturday the total owed by the investor had since risen after calculating a final tally of losses from “significant” positions in the exchange’s native FLEX token. The blog post didn’t mention Ver by name. “The individual first asked us to liquidate his account, but then continued to tell us for some considerable time afterwards that he wanted to send significant funds to the exchange to take physical delivery of the futures positions,” CoinFlex Co-Founders Sudhu Arumugam and Mark Lamb wrote in the post on Saturday. “It is clear to us now that he was wasting time and hoping for a bounce in the market that never materialized.” The pair said CoinFlex had commenced arbitration proceedings in Hong Kong to recover the $84 million, a process which they expect could take approximately 12 months before a judgment is reached. Ver, who earned the nickname “Bitcoin Jesus” for his early investment in crypto, declined to comment on the case. He told Bloomberg last month that he had no outstanding debt with CoinFlex. In a June 28 tweet he said that an unidentified counterparty owed him “a substantial sum of money.”
