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BitMEX slapped with a $300 million lawsuit

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BitMEX – one of the world’s largest and most popular cryptocurrency trading platforms – is being sued for a whopping $300 million for stiffing early investors, according to a report from Bloomberg.

Frank Amato with RGB Coin Ltd claims to have been the platform’s primary investors back in 2015. They claim their $30,000 investment was meant to have been switched into equity. According to estimates, this conversion is now worth more than $50 million. The suit, however, reassures that the equity was not granted to any of the parties. Currently, both Amato and RGB are seeking to recover both the current value of their equity in punitive damages as well as $250 million.

It is worth to point out that  Amato is a former JPMorgan Chase & Co. trader of commodity derivatives. Hayes was formally a Citigroup Inc. and Deutsche Bank AG derivatives trader.

BitMEX under attack

This year, BitMEX has been under threat on several occasions. Coin Rivet mentioned the leakage of thousands of consumer emails from the platform. The company’s Twitter account was also compromised.

After proposing a ban on cryptocurrency derivatives platforms such as BitMEX, the Financial Conduct Authority (FCA), the UK’s financial watchdog, has been considering whether the exchange should be allowed to operate in the country.

The U.S. Commodity Futures Trading Commission (CFTC) has also been investigating the platform to see if it breaks any rules by allowing Americans to trade on this platform.

BitMEX is also facing heavy competition from other companies like Binance and Deribit. Going forward many more exchanges are expected to enter the race for derivatives, but whether they will capture market share from BitMEX or not is yet to be seen.

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Olesia Deineka

Olesya is a freelance journalist for Bitxmi. Relatively new in the cryptocurrency space, she is passionate about journalism and fair, unbiased reporting.

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