BitMEX bitcoin Exchange confronted with $300m investor law suit
The world most famous bitcoin exchange, BitMEX, is currently being confronted with a $300m lawsuit brought against it by the former JPMorgan dereivative trader.
In line with the filing with the Superior Court of the State of California located in San Francisco dated Dec. 4,2019, Frank Amato and RGB Coin are now pursuing legal action against BitMEX, its CEO Arthur Hayes and the owner of HDR Global Trading.
Amato alleges that he was among the first potential investors in BitMEX in 2015, contributing about $30,000 on the understanding and expectation that he would later receive equity in the company and that till now, he is yet to see that happen.
Sequel to Amato’s initial investment, the exchange purportedly received another $30,000 from startup accelerator SOSV, which ought to have triggered Amato’s contracted equity conversion. However, the filing avers 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 about $50 million. In total, the investor is seeking a giant $300 million settlement , that is, $50,000 000 equity settlement and a punitive damage of $250,000 000.
In a nutshell, the court pleadings provides as follows:
“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.”
Briefly about BitMEX;
BitMEX is a famous cryptocurrency exchange, owned and manged by HDR trading limited, founded in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed, and enjoying financial assistances from family and friends., with headquarters in Seychelles and website as www.Bitmex.com .