A former JPMorgan derivatives trader is suing 1 of the globe'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. four, Frank Amato and RGB Money are now pursuing activity against BitMEX, its CEO Arthur Hayes and possessor HDR Global Trading.

Investor: BitMEX prevented recognition of entitlement

Amato says he was among the outset seed investors in BitMEX in 2022, 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 twenty-four hour period.

Following Amato'due south initial investment, the exchange purportedly received some other $xxx,000 from startup accelerator SOSV, which would trigger Amato'southward contracted equity conversion. Even so, 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 at present worth $l 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 involvement in BitMEX, which is conservatively estimated to exceed $fifty,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 information leak in Nov. Every bit Cointelegraph reported, executives appeared little concerned past the blunder, which saw user electronic mail addresses sent en masse to other users.

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

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