Crypto Exchange BitMex faces a $300 million lawsuit

One of the world's largest cryptocurrency exchange is hit with a $300 million lawsuit. A former JP Morgan trader is suing BitMex founder Arthur Hayes for $300 million for allegedly stiffing an early investor.

According to the Bloomberg report, Frank Amato and RGB Coin Ltd. are suing BitMex for not granting them equity. Amato and RGB claim to be among the first seed investors in the company when they invested $30,000 back in 2015.

 

Investors claim BitMex failed to grant equity.

According to the lawsuit, the investment of $30,000 was supposed to be later converted into equity, currently valued at more than $50 million, but Bitmex failed to grant the equity. Amato claims BitMex, which has employees in California and is registered in Seychelles, gave him false information. As of now, BitMex has not made any official statement about the lawsuit it is facing.

 

Amato alleges Arthur Hayes concealed information.

Amato claims that he was among the first seed investors in BitMEX in 2015, investing $30,000, on the knowledge that he would later receive equity in the company, but it did not happen. According to the lawsuit, Arthur Hayes sought to conceal information from Amato specifically to “prevent recognition of his equity.

Earlier, the exchange suffered a major data leak in November after it sent email addresses of its customers to other users.

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Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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