A former JPMorgan derivatives trader is suing one of the world’s biggest cryptocurrency exchanges for $300 million after it allegedly failed to deliver his equity.

According to filing with the Superior Court of the State of California in San Francisco dated Dec. 4, Frank Amato and RGB Coin are now pursuing action against BitMEX, its CEO Arthur Hayes and owner HDR Global Trading.

 

Investor: BitMEX prevented recognition of entitlement

Amato says he was among the first seed investors in BitMEX in 2015, contributing $30,000 on the understanding he would later receive equity in the company. Amato alleges that this has not happened as of the present day.

Following Amato’s initial investment, the exchange purportedly received another $30,000 from startup accelerator SOSV, which would trigger Amato’s contracted equity conversion. However, the filing states that Hayes “sought to conceal information” from Amato specifically to “prevent recognition of his equity.” 

According to unofficial estimates, Amato’s share of the company is now worth $50 million. In total, the investor is seeking a giant $300 million settlement. The filing summarizes:

“Through this action, Plaintiffs seek damages representing the value of their equity interest in BitMEX, which is conservatively estimated to exceed $50,000,000, together with punitive damages of $250,000,000. Plaintiffs also seek injunctive relief and other remedies, together with their attorneys’ fees and costs.”

 

Exchange brushes off setbacks

The move is the latest headache for BitMEX, which has seen its popularity endure despite a major data leak in November. As Cointelegraph reported, executives appeared little concerned by the blunder, which saw user email addresses sent en masse to other users. 

Nonetheless, business remains brisk. Daily trade volume for its Bitcoin (BTC) derivatives was $1.6 billion at press time.

In July, sudden volatility hit Bitcoin markets as traders withdrew funds from BitMEX after reports that it was under investigation by regulators in the United States.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

XRP Price Prediction: Ripple might retrace before heading higher

XRP price saw a swift breach of the overhead supply barrier, flipping it into support. This move indicates the presence of buyers; therefore, it is likely Ripple will continue to head higher.

More Ripple news

Citigroup launches digital asset unit to offer crypto services for wealthy clients

Wall Street firm Citigroup is the latest institution to offer crypto services for its rich clients. The global bank launched a new business unit dedicated to the new asset class and the blockchain space.

More Cryptocurrencies news

Litecoin Price Forecast: LTC offers a compelling opportunity above $146

Litecoin price is trying to recover support at the 50-week simple moving average (SMA) as LTC now trades in the upper half of the weekly range. The rebound has channeled minimal interest as daily volume has shrunk every day.

More Litecoin news

Ethereum EIP-1559 upgrade launches on Ropsten testnet as London hardfork nears

One of the most anticipated updates for the Ethereum network in 2021, the London hardfork scheduled for July, includes a controversial Ethereum Improvement Proposal (EIP) 1559. Ethereum core developer Tim Beiko announced that the London hardfork was ...

More Ethereum news

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP