Cryptocurrency

BitMEX and Arthur Hayes Now Have USD 300 Million Problem

BitMEX and Arthur Hayes Now Have USD 300 Million Problem

Major crypto exchange BitMEX and its co-founder and CEO Arthur Hayes just got into another problem.

The company and its CEO are now being sued for USD 300 million by Frank Amato, a former JPMorgan Chase commodity derivatives trader, and RGB Coin Ltd., who claim to have been the first seed investor of BitMEX in 2015, Bloomberg reported.

According to the suit, the initial USD 30,000 investment was supposed to later be converted into equity, but they weren’t granted the equity, the report added.

Amato and RGB Coin want to recoup the value of their equity, more than USD 50 million, and USD 250 million in punitive damages, it said.

The lawsuit is one of the problems BitMEX faced recently.

As reported, on November 1st, the exchange sent out a mass email about an update to their indices, but failed to ensure that the recipients’ email were hidden, instead leaving all of the emails in plain sight for anybody to see, which is a major security risk. At the time, they’ve acknowledged the breach and attributed it to a software error they claimed to have identified and fixed.

Meanwhile, in July, it was announced that the U.S. Commodity Futures Trading Commission investigates whether BitMEX broke rules by allowing Americans to trade on the platform, which isn’t registered with the agency.

(To be updated)

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