On Monday, a subsidiary of Genesis summoned Ver over a $20.86 million declare concerning choices that he allegedly uncared for to settle in late December.
Ver stated right this moment that he has “ample funds readily available” to pay that sum and that he’s keen to pay any quantity that he correctly owes the corporate.
Nevertheless, he additionally stated that his settlement with Genesis required the agency to stay solvent — one thing that the corporate has apparently didn’t do. Ver stated that Genesis has been unable to guarantee him of its solvency since mid-2022.
Ver wrote in a Reddit submit:
Genesis was required by our settlement to stay solvent — as Genesis can’t ask its purchasers to play a “heads purchasers lose, tails Genesis wins” recreation. It seems that at factors since at the very least final June Genesis dipped beneath the solvency line.
Ver primarily maintains that there’s a discrepancy between Genesis’ valuation of its buyer collateral and its valuation of its personal digital property. Ver stated that when he requested Genesis for additional details about its monetary standing, the corporate refused to supply readability, which lead the agency to file the costs seen this week.
Notably, Ver didn’t point out Genesis’ current chapter submitting. That submitting solely affected the corporate’s lending division and never its different areas of operation. As such, Genesis appears to not be completely bancrupt, which is able to presumably influence Ver’s case in courtroom.
If Ver fails to answer the allegations inside 20 or 30 days of his Jan. 23 summons, a default judgment will pressure him to pay the quantity demanded by the corporate. It’s unclear if Ver has submitted a authorized response to the costs introduced on Monday.
Ver was beforehand sued by one other struggling crypto firm, CoinFLEX, in June 2022. These allegations claimed that Ver owes $47 million to the corporate. There have been no developments in that case since arbitration started in Hong Kong final summer season.