A legal battle has been ongoing between Roger Ver, an investor also known as “Bitcoin Jesus,” and Jihan Wu, the co-founder and chairman of Matrixport subsidiary Smart Vega, in Seychelles since last year over frozen cryptocurrency funds.
Ver’s Allegations against Matrixport
Ver alleged that Matrixport, through its subsidiary Bit.com, confiscated $8 million from him as a result of financial losses that Wu incurred due to the collapse of CoinFLEX, a separate cryptocurrency exchange.
In his affidavit filed in the Seychelles Supreme Court, Ver asserted that Wu’s instruction to withhold his funds was based on a false belief that Ver owed money to a third party (CoinFLEX), who, in turn, owed money to Wu.
Matrixport’s Perspective
Matrixport offers a different perspective, alleging that Ver was in breach of contractual obligations related to margin trading irregularities. They also stated that Ver would need to pay a penalty fee for defaulted margin calls.
Matrixport’s spokesperson, Ross Gan, claimed that Ver had made unreasonable demands beyond fund withdrawal, and lawyers have advised the company to withhold the funds in a third-party custody account pending a court decision.
Matrixport intends to respect the legal process and the ultimate court ruling while reserving its rights to pursue further legal actions in the ongoing dispute with Ver.
The Dispute and Confidentiality Breach
The dispute arises from a narrative that emerged after CoinFLEX’s collapse, suggesting that a large customer, who was later named Ver, failed to meet a margin call, leading to financial losses for CoinFLEX.
However, Ver argues that the narrative of his involvement was a result of breaches of confidentiality regarding arbitration between CoinFLEX and himself.
Despite this, Ver claims that CoinFLEX’s founder and CEO, Mark Lamb, intentionally misrepresented the case to the public, making it appear as if CoinFLEX was the plaintiff in the dispute.
Ver initiated the arbitration case in June 2022, seeking $200 million in damages. CoinFLEX filed for restructuring in the Seychelles in August 2022 and also filed a counterclaim accusing Ver of defaulting on an $84 million debt.
Current Developments and Expectations
Recently, creditors of CoinFLEX accused CoinFLEX’s CEO, Mark Lamb, of diverting company resources to set up OPNX, a new exchange. They aim to recover money from Ver, whose debt they allege Lamb settled in secret.
Ver argued that the arbitration was settled on a “drop-hands” basis and that he is expecting to receive $100 million from third parties as part of the resolution.
