CoinFLEX started negotiation procedure for $84 million recovery and open limited withdrawals

Crypto investment platform CoinFLEX is moving forward with its plan to reclaim $84 million in funds by starting negotiation procedures in Hong Kong against an individual account holder. It is moving quickly to recover as much liquidity as it can from a debacle that has left it $84 million short due to a delinquent account held by an unnamed whale.

Co-Founders Sudhu Arumugam and Mark Lamb accepted in their July 9 declaration that the judgment would provide access to the individual’s “worldwide assets” and that their lawyers were “very confident” they could impose the award.

“We have commenced arbitration in HKIAC for the recovery of this $84m as the individual had a legal obligation under the agreement to pay and has refused to do so.”

The firm said the process could take 12 months to get a judgment in Hong Kong.

 Though the “large individual customer” was not named in the Saturday declaration, Lamb has formerly publicly declared that Bitcoin Cash (BCH) proponent Roger Ver was the defaulting customer in question.

Ver, though, has denied that owes any money to the firm. He fired back at the rumors by stating that an anonymous counterparty owes him “a substantial sum of money.”

In the most recent update, Arumugam and Lamb said that the individual was “wasting time” by promising to refill his account with funds that never arrived.

They added that liquidating his positions created significant slippage, which has increased the sum the firm says he owes. Initial estimates put the outstanding sum at $47 million, but that amount was increased to $84 million after liquidating his FLEX token positions.

FLEX is the native token of the CoinFLEX platform.

Amongst the drama between CoinFLEX and the individual whale depositor, withdrawals have been postponed since June 23. Lamb hoped to have them back up for users by the beginning of July.

Arumugam and Lamb claimed that they now have plans to create “temporary liquidity for CoinFLEX depositors” by initially making 10% of their account balances available for withdrawal.

No date has been set for this to take place, but the duo expects withdrawals to take a week or less.

CoinFLEX has been working on ways to make up for the deficit in funds left by the whale investor’s account.

The firm specified that in addition to paying accounts and pursuing legal action, part of its funds’ recovery plan involved issuing 47 million Recovery Value USD (rvUSD) tokens which can be bought for $1 each. It may also offer some depositors the option to roll their deposits into equity in the company.

The firm is in “close discussions” with an unidentified large US exchange to enter into a partnership that could help boost CoinFLEX’s viability.