CoinFLEX let one trader run a negative balance — then froze all withdrawals

CoinFLEX, a crypto derivatives exchange registered in Seychelles with operations tied to Hong Kong, let large individual accounts run negative equity against a personal guarantee rather than requiring upfront collateral. In June 2022, as markets fell, one account went deeply negative and could not immediately cover the shortfall. On June 23, 2022, CoinFLEX suspended withdrawals for all customers, citing 'extreme market conditions.'

Days later, CEO Mark Lamb publicly named the counterparty as Roger Ver, the early Bitcoin investor known as 'Bitcoin Jesus,' saying Ver owed CoinFLEX $47 million in USDC under a written contract obligating him to personally guarantee any negative equity on his account and top up margin regularly. Ver denied owing the debt and said CoinFLEX in fact owed him money.

By July 2022, CoinFLEX said the shortfall from liquidating Ver's positions had grown to $84 million and began arbitration in Hong Kong to recover it, estimating roughly a year to get an enforceable judgment. The exchange tried to resume partial withdrawals and raise fresh capital while filing for restructuring in Seychelles the following month.

CoinFLEX ceased trading in April 2023 and officially shut down on October 31, 2023. Its founders relaunched as OPNX using CoinFLEX's technology, but OPNX drew a Dubai regulatory fine and folded in February 2024. In 2023, CoinFLEX creditors sued former CEO Mark Lamb, alleging he secretly settled the $84 million claim against Ver and dropped the case — leaving the original debt unresolved for the people who lost access to their funds.