Crypto Exchange BitMEX faces a $300 million investor lawsuit for providing false share information to two of the original investors.
12 December, 2019 | AtoZ Markets – According to recent report Frank Amato and RGB Coin are now pursuing action against BitMEX, its CEO Arthur Hayes and owner HDR Global Trading. BitMEX and its founder face a $ 300 million investor lawsuit. That is for failing to provide equity on investments made by early lenders.
Frank Amato and RGB Coin are Pursuing Action against Bitmex
Frank Amato and RGB Coin Ltd were among the first investors in BitMEX. In 2015, Amato would have invested $ 30,000. He planned to convert the amount into share capital at a later date. Currently, his investment is expected to be worth more than $ 50 million. But Amato and RGB Coin Ltd. never got equity.
Now, Amato thinks that the fault lies with BitMEX, which would have given him wrong information four years ago. Amato and RGB Coin are following the same value as they would have been if they had granted shares – $ 50 million. The remaining $ 250 million that the derivatives exchange has to pay would be punitive damages.
According to recent reports, BitMEX is not performing as well as you might think at the end of 2019. But it has recently been reported that the volume BTC’s daily trading reaches its lowest point in 2019. In the meantime, the only description that corresponds to the market currently is “lifeless.”
Provided False Information of Bitcoin Volumes
Of course, the activity on BITMEX did not stop completely. But, the situation is not very good, either. Bitcoin volumes in November 2019 seemed quite similar to those of November 2018. That was when the crypto market collapsed for the second time in 2018.
The situation was significantly different in the summer of this year when volumes exceeded $ 1 billion on several occasions. Then, in November, BTC volumes dropped to just over $ 41 million. This is all more worrying as the price of bitcoin traded at a discount on BitMEX last month. BTC trading is around $ 55 cheaper than elsewhere.
At the time, the reports also indicated that volumes against Tether exceeded 85%, 75% more than in the weeks before the volume fell. Traders and investors were selling their BTC, which has likely led to its drop from $ 8,500 to $ 7,200 currently.
Bitcoin’s total transaction volume currently stands at $ 17.38 billion, while its market capitalization is $ 130.43 billion. Investors expected a massive surge in BTC prices in 2019. It will likely remain disappointed as the crypto market is trading in the red now, with nothing to indicate a positive change is coming.
AtoZMarkets’ PR team has contacted BitMEX regarding this lawsuit case. We will keep you posted as soon as we receive any quote or comment from them.
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