An early investor in Bitcoin-related startups, Roger Ver, claimed that he can afford to pay Genesis $20 Million but insolvency changes agreement. Ver also claimed that his agreement required the firm to remain solvent.
On January 25th, 2023, Ver said that he can afford to pay money that he allegedly owes to Genesis but that he may not need to do so. A subsidiary of Genesis summoned Ver on a $20.86 Million claim regarding options that he allegedly neglected to settle in late December.
Ver also added that he has “sufficient funds on hand” to pay that sum and also he is able to pay any amount that he properly owes the company. He also noted that his agreement with Genesis required the firm to remain solvent — something that the company has apparently failed to do. Genesis has not been able to assure Ver of its solvency since mid of 2022.
In a Reddit post, Ver added “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. It appears that at points since at least last June Genesis dipped under the solvency line.”
It must be noted that Ver primarily maintains that there is a discrepancy between the valuation of Genesis of its customer collateral and the valuation of its own digital assets. He also added when he was asked Genesis for more information about its financial standing, the firm refused to give clarity that led the firm to file the charges as seen this week.
Meanwhile, Ver did not add about Genesis’s recent bankruptcy filing that only affected the firm’s lending division, not its other areas of operations. Such as Genesis not to be completely insolvent, that will presumably impact the case of Ver in court.
Moreover, if Ver fails to respond to the allegations within 20 or 30 days of his January 23rd summons, a default judgment will force him to pay the amount asked by the firm. It is not clear if Ver has yet submitted a legal response to the charges announced on Monday.
Ver was previously sued by some other crypto company, CoinFLEX, in June 2022. The allegations against Ver also claimed that he owes $47 Million to the firm. There have been no developments in that case since arbitration started in Hong Kong last summer.
Source: https://www.thecoinrepublic.com/2023/01/26/find-here-what-roger-ver-said-regarding-genesis/