One of the most popular Bitcoin margin trading exchanges, BitMEX, and its founder, Arthur Hayes, are being sued as per a recent report. The case is for $300 million, and it has been brought up by an early investor, who says he has been stiffed by the company.
Law Case Against BitMEX For $300 Million
According to a recent report, one of the leading Bitcoin margin trading exchanges, BitMEX, has been taken to court by an early investor. Frank Amato and RGB Coin LTD have filed the suit on December 4th in the California State Superior Court in San Francisco.
The plaintiffs were among the first investors in the exchange back in 2015. At that point, they have put in $30,000 as an investment package, and the amount was supposed to be converted into equity that has a current value of over $50 million. However, they claim that the amount has not been transferred to them yet. Amato is reportedly blaming BitMEX and Arthur Hayes for providing false information.
The report also notes that Amato and RGB Coin are not only seeking $50 million, but they also want $250 million to be paid in punitive damages.
At the time of this writing, BitMEX has not issued an official response to either confirm or deny the accusations.
BitMEX Hurdles In The Past
In 2019, BitMEX has been under a lot of regulatory pressure. Earlier this year, the United States Commodities and Futures Trading Commission (CFTC) launched an investigation against the popular exchange. The case was brought up because BitMEX had allegedly allowed U.S.-based traders to operate on its platform, which was not allowed at the time. What followed were a few months of decreasing revenues for the exchange, but it managed to recover quickly and is once again in the positive.
More recently, the company made a slight mistake allowing some users’ emails to be leaked while sending an update letter. However, the issue was put to bed as BitMEX quickly confirmed that it was a mistake on its end and that no other information was leaked. Furthermore, the official statement from the company added that the employees are working diligently on reducing any possible risks, and most passwords were reset.