CoinFLEX Will Cut Staff By 50% After Roger Ver Dispute

CoinFlex will cut staff by 50% which is expected to reduce the troubling exchange all while being in a dispute with Roger Ver so let’s read more today in our latest cryptocurrency news.

The company co-founders Sudhu Arumugam and Mark Lamb wrote in a blog post:

“We, unfortunately, had to let go of a significant number of the CoinFLEX team across all departments and geographies.”

CoinFlex will cut staff by 50% and in combination with the other reductions, it will reduce the costs of the company by 50-60% according to the company founders. The remaining staff will be focused on product and technology exclusively. The news came after a debilitating month for the exchange which froze the customer withdrawals in June but unlike the slew of other cryptocurrency companies that froze customer accounts in the same period, CoinFlex claimed that it is in dire straits because of the $84 million deficit owed to the company by one large individual.

That customer according to the platform’s co-founder Mark Lamb is the prominent BTC evangelist Roger Ver. The exchange entered arbitration with Ver in Hong Kong to try and recoup these funds but a verdict is not exposed for another 11 months. Ver earned the moniker “Bitcoin Jesus” and he denied multiple times of allegations that he owes the company money. Since then, CoinFlex made 10% of the user funds available for withdrawal but the majority of the customer deposits remained inaccessible.

The exchange was forced to make massive cuts to the payroll and spending but in today’s blog post, the founders alluded to the fact that the company is hoping for a larger company to step in and help them. They said:

“The intention is to remain right-sized for any entity considering a potential acquisition of or partnership opportunity with CoinFLEX.”

As plenty of crypto companies started collapsing in a domino effect, the industry leaders like Sam Bankman Fried and his FTX exchange, rushed to bail out troubled companies and try to mitigate the damage to the broader market.

Recently some rumors have been
spreading that I have defaulted on a
debt to a counter-party. These rumors
are false. Not only do I not have a debt
to this counter-party, but this counter-
party owes me a substantial sum of
money, and I am currently seeking the
return of my funds.

— Roger Ver (@rogerkver) June 28, 2022

As recently reported, The trading platform CoinFlex opened limited withdrawals for customers after it froze them last month amid the dispute with the crypto investor Roger Ver. The company said in a blog post that the users can take out 10% of their funds but not in the platform’s stablecoin FlexUSD.