Speculators and investors in the cryptocurrency world don’t shy away from taking service providers to court. BitMEX, one of the popular platforms for margin trading, currently faces a $300 million lawsuit.
The BitMEX Lawsuit
Becoming one of the world’s most popular cryptocurrency is both a blessing and a curse rolled into one. For BitMEX, its success has been well-documented over the years. Their service includes exposing customers to cryptocurrency volatility without forcing them to buy or own bitcoin and altcoins.
Despite noting major growth, the company is now dealing with the other side of the medallion. A $300 million lawsuit has been filed by RGB Coin, who claims to be an angel investor of the exchange.
Frank Amato and RGB Coin Ltd claim they were the first seed investor of the BitMEX exchange in 2015. With $30,000 changing hands, RGB Coin expected to receive company equity in return.
That equity was never granted, according to the lawsuit. Amato claims he was provided false information despite having evidence of how he handed over the money as an investor.
The logical course of action is trying to recoup the value of the equity in question. At current values, that equity equates to $50 million, a vast increase from the $30,000 back in 2015.
Additionally, Amato wants $250 million in punitive damages, which appears to be rather steep.
Some industry experts claim BitMEX is now valued at over $1bn. That makes it one of the highest-valued trading platforms in the cryptocurrency space.