Genesis sues Roger Ver for $20.9M over Unsettled Crypto Options Trades

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Key takeaways:

  • Before being compelled to pay, Roger Ver has 20 days to respond to the Genesis unit GGC International summons.
  • The BCH advocate will automatically be obligated to pay the entire sum if he doesn’t respond within that time.

A division of the cryptocurrency lending company Genesis has filed a lawsuit against the proponent of Bitcoin Cash, Roger Ver, for unresolved crypto options worth $20.8 million. A Genesis-owned business filed the complaint, stating that its manager Roger Ver refuses to make total payments.

A complaint against Roger was brought in the New York State Supreme Court on January 23 by GGC International, a part of the bankrupt cryptocurrency lender, who claimed that the proponent of BCH had failed to settle expired crypto options contracts.

Roger has 20 days in all to respond to the summons. The BCH advocate will be required to pay the entire cost if he doesn’t respond within that time. The BCH proponent has yet to respond to the case as of this writing.

GGC International, based in the British Virgin Islands, is requesting monetary damages of at least $20,869,788, as well as other costs and justifiable legal fees related to the summons’ issuance.

According to the Genesis website, GGC International is a business with its headquarters in the British Virgin Islands. Genesis Bermuda Holdco Limited, a division of Genesis Global Holdco, which is a party to the bankruptcy case, is the company’s owner.

Roger has a lengthy history of missing payments. A similar notice of default was sent to Roger Ver by the troubled cryptocurrency exchange CoinFLEX for allegedly breaching his financial obligations to them months before GGC International’s court action.

Mark Lamb, CEO of CoinFLEX, estimates that Roger owns CoinFLEX for around $47 million in USDC. In accordance with a contractual agreement between the exchange and Roger, the latter was required to guarantee any negative equity on his CoinFLEX account personally and to fill up the margin consistently.

On January 20, the cryptocurrency lender filed a Chapter 11 bankruptcy filing with the Southern District of New York. To advance the business, the company started a restructuring under court supervision. A dedicated committee will oversee the procedure to produce a result that benefits both Genesis clients and Gemini Earn users.

The parent firm of Genesis Global, Digital Currency Group (DCG), is the target of creditors from Genesis. Genesis’ debtors sued DCG and Barry Silbert, the firm’s creator and CEO, in a securities class action on January 24. The company allegedly offered unregistered securities in violation of federal securities laws, according to the creditors.

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