According to CoinDesk: A legal battle is brewing between Roger Ver, often referred to as 'Bitcoin Jesus', and Jihan Wu, the co-founder and chairman of Matrixport. The conflict stems from $8 million that Ver claims Wu confiscated from him in retaliation over his alleged role in the collapse of the cryptocurrency exchange CoinFLEX.
Last year, Ver filed a lawsuit in Seychelles against Matrixport subsidiary Smart Vega, operator of Bit.com, alleging the exchange is refusing to allow him to withdraw his $8 million. According to Ver, Wu, as a creditor of CoinFLEX, incurred financial losses when the exchange underwent restructuring. Ver's Seychelles suit pushes back against the narrative that he caused CoinFLEX's fall.
"CoinFLEX’s insolvency lies at the heart of the reason Wu ordered Matrixport to convert my funds. CoinFLEX’s insolvency has nothing to do with the sums Matrixport owes to me,” claims Ver in court documents.
Ver also alleges that a breach of confidentiality occurred during arbitration between CoinFLEX and himself. He initiated an arbitration case against CoinFLEX in June 2022, seeking $200 million in damages, with CoinFLEX filing a counterclaim for $84 million.
Further, Ver alleges that CoinFLEX's founder and CEO, Mark Lamb, violated confidentiality to misrepresent their arbitration proceedings to the public.
According to Ver, quarantine company Matrixport admits to witholding the cryptocurrency in question but disputes the reasons. Wu insists Ver should send his USDC back to CoinFLEX to repay the debt there and convince CoinFLEX to release $5 million USDC to him.
Ver now seeks to liquidate Matrixport in Seychelles, based on his claim that it is refusing him the funds owed due to personal reasons. The company wants to deduct $1.29 million as a fee for defaulted margin calls and legal costs.
Matrixport, however, insists it has the right to withhold the funds until a court decision provides a resolution on the issue.
