(Bloomberg) -- BitMex, one of the world’s most popular cryptocurrency exchanges, and founder Arthur Hayes are being sued for $300 million for allegedly stiffing an early investor.
Frank Amato and RGB Coin Ltd. claim to have been the first seed investor of BitMex in 2015. The $30,000 investment was supposed to later be converted into equity, currently d at more than $50 million, but they weren’t granted the equity, the suit said. Amato claims BitMex, which has employees in California and is registered in the Seychelles, gave him false information.
The suit Dec. 4 in California state superior court in San Francisco. “We will address Mr. Amato’s claims through the proper legal channels and will not comment beyond that,” BitMex said in a statement.
Amato and RGB Coin want to recoup the of their equity, more than $50 million, and $250 million in punitive damages. Based on the estimated of the stake, the exchange is now d at about $1 billion.
Amato is a former JPMorgan Chase & Co. commodity derivatives trader, according to his LinkedIn profile. Hayes was formally a derivatives trader at Citigroup Inc. and Deutsche Bank AG.
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