Cryptocurrency trading platform, CoinFlex has announced that it will be pursuing a legal decision in their ongoing issue that will solve the company’s liquidity problems that pushed them to pause all withdrawals on their platform for the past three weeks.

On Saturday, co-founders Sudhu Arumugam and Mark Lam announced in a blog post that they will be seeking legal redress to recover over $84 million in losses from a single customer. CoinFLEX had claimed late last month that the customer was a crypto whale and Bitcoin evangelist Roger Ver.

This customer had allegedly defaulted on a position last month and had failed to honor the agreement with CoinFLEX to make available any negative balance on his account. CoinFLEX had previously blamed this customer’s inability to cover their position as the reason for the freezing of withdrawals on the company’s platform worldwide in late June.

Sudhu and Lamb state that although they are in dire need of a solution to their current worse, it may take up to 12 months before a verdict on the case is issued. However, they are optimistic about a substantial recuperation of funds for CoinFLEX because the liability as stated in the case is a personal one.

Sudhu revealed that the individual is personally liable to repay the total amount of equity and their lawyers are very confident that they can secure a legal decision to enforce an award against him. Ver’s alleged default ended up hurting the company twice.

They had to force a total freeze in withdrawals on their platform and then incurred massive losses when they covered the loss by selling Ver’s massive positions. CoinFLEX also revealed that the two parties had been in communication for weeks but Ver repeatedly defaulted on his promises to pay up which has forced CoinFLEX to seek legal redress.

CoinFLEX also announced that they hope to make at least 10% of all customer’s balances available for withdrawal as soon as possible. To achieve this, CoinFLEX will have to sell all the non-native assets locked on their platform.

The company will also have to pause trading temporarily and close all the current futures positions to build a little insolvency. The company also said that it’s looking to raise a massive amount of funds from prospective investors and that they are currently talking to multiple large CoinFLEX customers about converting their deposits into equity.

Featured image source: cryptopotato.com