Mark Lamb said on Wednesday that the exchange might not be able to allow customers to withdraw money again on Thursday.
We will require more time. It is not likely that withdrawals will be re-enabled tomorrow, according to Lamb.
Several large funds are interested in buying the $47 million in debt that Roger Ver is said to owe.
Billions of dollars have been wiped off the market in the latest "crypto winter", and CoinFlex is one of the latest victims. It has lost 50% of its value this year and is off 70% from its all-time peak.
Last week, the exchange paused withdrawals for customers due to extreme market conditions. Lamb claimed on Tuesday that the investor is Roger Ver, who has been dubbed "Bitcoin Jesus" for his evangelical views on cryptocurrencies.
Ver did not deny that he owes money. When contacted by CNBC, Ver was silent.
Ver's account went into negative equity, according to Coin Flex. The exchange usually liquidates an investor's position. The exchange said that Ver had an agreement that prevented this from happening.
To fix the $47 million hole in its balance sheet, the company is issuing a token called Recovery ValueUSD, or rvUSD, and offering 20% interest for holding the virtual currency. Lamb said that he would be able to pay the interest rate if he could get back the funds from Ver.
We don't know what's going to happen after he doesn't repay or if he does
He said he is confident that the recovery will happen.
Lamb said that the company is talking to multiple funds that buy distressed debts of companies and that it could buy the entire $47 million.
Some of the funds that have gotten in contact have more than $10 billion in assets under management.
Lamb wouldn't name any of the traditional funds that inquired, but he did say that they came from traditional funds.
We are talking about a lot of money. Lamb said it was coming from a mixture of distressed debt funds, existing users of the platform, and investors in CoinFlex.
The recent spat between Lamb and Ver is the latest in a long line of disputes in the market.
A notice of default has been served on Ver, according to Lamb. The goal is to continue to talk with him and resolve this amicably, according to the CEO. Lamb said there are other legal recourses.
He said that they have an obligation to go through the legal channels.
If the investor failed to meet a margin call, his positions wouldn't be automatically liquidated as they would normally be.
A margin call is when an investor has to commit more funds to avoid losses on a trade.
Lamb said that the data they had seen made them feel comfortable going into such an agreement.
Lamb said that the agreements will be eliminated by Coin Flex.
It would have been better if there had been no non-liquidation agreements.
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