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The Bitcoin.com CEO says he has sufficient funds to repay $21 million to Genesis but questions the lawsuit against him.
Bitcoin.com CEO Roger Ver recently announced that he has enough to pay roughly $21 million to the embattled crypto firm Genesis. Ver, commonly known as “Bitcoin Jesus,” took to social media to make this revelation after Genesis’ affiliate said he defaulted on a sizable transaction. According to GGC International Limited, Ver failed to settle approximately $21 million in crypto option transactions.
On Tuesday, GGC International Limited issued a court summons to the Bitcoin.com CEO, to which he replied on social media. In addition to being “happy to pay what I actually owe,” Ver also said:
“However, 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.”
Ver also questioned how Genesis tried to extract the owed funds from him.
“Last June, I asked Genesis for assurances of their solvency. In return, Genesis provided me with financial information that has been called into question by recent events. When I asked Genesis to clarify the financial information they had provided me, they refused and instead chose to file suit,” explained he.
Ver added that he looked forward to an explanation from the crypto lending platform on how it valued some of its line items. The Bitcoin.com boss particularly pointed out perceived discrepancies between the valuation of customer collateral and Genesis’ own digital assets.
GGC International Limited’s $20.9 million suit against Ver over failure to settle crypto options transactions expired at the end of last year.
Genesis Filed for Bankruptcy Before Bitcoin.com CEO Repayment Development
Genesis filed for bankruptcy protection earlier last week following the intensified crypto contagion after FTX’s crash last November. At the time, an independent director for the company, Paul Aronzon, explained:
“We have crafted a deliberate process and roadmap through which we believe we can reach the best solution for clients and other stakeholders.”
Furthermore, in its filings, Genesis’ lending unit reported having between $1 billion and $10 billion in assets and liabilities.
Furthermore, Genesis said it expects ample funds to repay its unstructured creditors after the restructuring process.
The first hearing for Genesis’ bankruptcy case reportedly took place at the beginning of the week in a New York Southern District court. The court will make numerous decisions as the first step in Genesis’ bankruptcy case. These decisions include whether to accept Genesis Global Holdco’s requested Chapter 11 relief alongside two of its lending business subsidiaries. The subsidiaries, collectively known as Genesis Capital, are Genesis Asia Pacific and Genesis Global Capital.
Genesis also faces a lawsuit from the Securities and Exchange Commission (SEC) over the unregistered offering and sale of securities. The US regulator alleged that the crypto lender was involved in this scheme with another crypto-focused company Gemini. According to the SEC, both companies sold questionable securities via the Gemini Earn lending program.