Roger Ver, CEO of Bitcoin.com, has revealed that he can settle his debt to the troubled crypto currency company Genesis for around 21 million dollars. After an affiliate of Genesis told he defaulted on a significant transaction, Ver, also known as "Bitcoin Jesus," turned to social media to make this announcement (1).
Ver allegedly did not pay around $21 million worth of crypto option deals, as stated by GGC International Limited.
On Tuesday, GGC International Limited sent a court summons to the CEO of Bitcoin.com. The CEO responded to the summons on various social media platforms. Ver not only stated that he was "willing to pay what I genuinely owe," but he also mentioned the following:
"However, to fulfill its obligations under our agreement, Genesis must maintain its financial viability. Genesis cannot reasonably expect its customers to participate in a game in which, if they lose, Genesis emerges victorious."
Additionally, Ver questioned how Genesis attempted to collect his owed monies.
"In June of this past year, I questioned Genesis about the reliability of its financial stability. In exchange, Genesis gave me some financial details, the veracity of which has been doubted due to recent occurrences. When I requested Genesis to explain the accounting reports they had supplied me, they refused and instead opted to pursue the suit," he stated.
Ver also stated that he was looking forward to an answer from the cryptocurrency loan platform about how certain line items were priced. In particular, the CEO of Bitcoin.com brought out perceived inconsistencies between the worth of client security and Genesis' digital assets.
The lawsuit that GGC International Limited brought against Ver for failing to settle cryptocurrency options trades for $20.9 million ran out of time at the end of last year.
Recently Genesis Filed for Bankruptcy
Following the exacerbated crypto contagion that followed FTX's meltdown in November of last year, Genesis submitted a petition for protection under the bankruptcy laws earlier this week.
In addition, Genesis' loan subsidiary indicated in its papers that its assets and liabilities were between $1 billion and $10 billion.
In addition, Genesis stated that it anticipates having sufficient liquidity to repay its outstanding creditors after completing the reorganization process.
According to reports, the initial hearing for the bankruptcy case filed by Genesis was held at the start of this week at a court in the Southern District of New York. As the initial proceeding of the bankruptcy action brought by Genesis, the court will make several decisions.
These determinations involve whether or not to grant the sought Chapter 11 relief to Genesis Global Holdco with two of its lending company subsidiaries. Genesis Asia Pacific and Genesis Global Capital are the names of the two subsidiaries that make up the financial holding company known as Genesis Capital.
Genesis is also the target of a legal action brought by the Securities and Exchange Commission (SEC), which alleges that the company sold and offered unregistered securities. The US regulator stated that the cryptocurrency lender and another firm focusing on cryptocurrencies, Gemini, were participating in this fraud.
According to the Assets and Exchange Commission, both entities participated in the Gemini Earn loan scheme and offered securities that raised questions.