Bitcoin Cash Evangelist Roger Ver said January 25 that he can afford to pay the money he allegedly owes Genesis, but may not need to.
On Monday, a subsidiary of Genesis sued Ver over a $20.86 million claim over options he allegedly neglected to settle in late December.
Ver today said he had “sufficient funds” to pay the sum and was prepared to pay any amount he owed the company.
However, he also said his deal with Genesis required the company to remain solvent, which the company apparently failed to do. Ver said Genesis has been unable to assure it of its solvency since mid-2022.
Ver wrote in a Reddit post:
Genesis was bound by our agreement to remain solvent, because Genesis cannot require its customers to play a game of “coins, customers lose, heads, Genesis wins”. It appears that at times since at least last June, Genesis has dipped below the credit line.
Ver primarily argues that there is a discrepancy between Genesis’ valuation of its customers’ collateral and the valuation of its own digital assets. Ver said that when he asked Genesis for additional information about his financial situation, the company refused to provide clarification, leading the company to file a lawsuit this week.
Notably, Ver did not mention Genesis’ recent bankruptcy filing. This filing only affected the company’s loans division and not its other areas of business. As such, Genesis doesn’t appear to be entirely insolvent, which will likely impact Ver’s case in court.
If Ver does not respond to the allegations within 20 or 30 days of his Jan. 23 summons, a default judgment will force him to pay the amount demanded by the company. It is unclear whether Ver has submitted a legal response to the charges announced on Monday.
Ver was previously sued by another struggling crypto firm, CoinFLEX, in June 2022. These allegations claimed that Ver owed the company $47 million. There have been no developments in this case since the start of arbitration in Hong Kong last summer.
