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Photographer: Michael Nagle/Bloomberg Photographer: Michael Nagle/Bloomberg

BitMex, one of the world’s most popular cryptocurrency exchanges, and founder Arthur Hayes are being sued for $300 million for allegedly stiffing an early investor.

Frank Amato and RGB Coin Ltd. claim to have been the first seed investor of BitMex in 2015. The $30,000 investment was supposed to later be converted into equity, currently valued at more than $50 million, but they weren’t granted the equity, the suit said. Amato claims BitMex, which has employees in California and is registered in the Seychelles, gave him false information.

Arthur Hayes, chief executive officer of BitMEX.

The suit Dec. 4 in California state superior court in San Francisco. “We will address Mr. Amato’s claims through the proper legal channels and will not comment beyond that,” BitMex said in a statement.

Amato and RGB Coin want to recoup the value of their equity, more than $50 million, and $250 million in punitive damages. Based on the estimated value of the stake, the exchange is now valued at about $1 billion.

Amato is a former JPMorgan Chase & Co. commodity derivatives trader, according to his LinkedIn profile. Hayes was formally a derivatives trader at Citigroup Inc. and Deutsche Bank AG.

( Adds company comment in the third paragraph )