BitMex crypto exchange, and its founder, Arthur Hayes, are facing a lawsuit from one of the early investors in the company. The lawsuit came following allegations of fraud against the investor.

According to reports, BitMex and its founder are being sued for $300 million by RGB Coin and Frank Amato. The lawsuit was filed earlier this month with the Superior Court of the California State in San Francisco.

Being the first seed investors in BitMex, Amato claims he and his company invested $30,000 in the then startup. He said this fund was allegedly intended to be converted into equity. At today’s valuation, the amount would have been worth $50 million.

However, per the lawsuit, the equity was never issued. The plaintiffs claim BitMex gave them false information to lure them into the investment. This forms the basis of their lawsuit.

The plaintiffs are seeking damages which represent the value of their equity interest in BitMex. This is conservatively estimated to exceed $50 million together with punitive damages of $250 million. They further seek injunctive relief and other remedies, together with their attorney’s charges.

BitMex is yet to respond to requests for comment on the matter. However, it is believed the firm will be preparing to defend against the claims from the plaintiffs.

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