BitMex to pay $ 44 million in legal settlement with former founders

Cryptocurrency exchange BitMex has been spared another lawsuit in court, having reached a monetary settlement with two of its former founders. Frank Amato and Guido Capone, two of BitMex’s early investors, will receive $ 44 million as part of the deal.

The founders started legal proceedings against the exchange to recover capital they had invested five years ago. At that time Arthur Hayes – former CEO of BitMex – was looking to capture Frank Amato’s investment, sources close to the case say. Later, this investor allied himself with Elfio Guido Capone; both accused the BitMex management of giving them misleading information and of not allowing them to generate profits with the invested capital.

Last year the two investors filed the Lawsuit against BitMex for $ 540 million, about 90 million belonging to the investment and about 450 million of compensation for damages.

Despite the fact that the total sum they were seeking to obtain with this petition exceeded 500 million dollars, both Amato and Guido decided to solve the entire case for just over 40 million dollars. The investors withdrew the lawsuit from the California Superior Court and, according to attorney Pavel Podogin, the entire case will be resolved out of court.

In recent months BitMex has faced several lawsuit processes that have even had a harmful effect on the popularity of the exchange. For example, for the month of October the firm registered a withdrawal of more than 40,000 BTC in less than 24 hours, after it was accused by the CFCT (Commodity Futures Trading Commission) of violation of anti-money laundering regulations.

Samuel Reed, one of the co-founders of BitMex, was arrested for violating these regulations and offering trading services illegally. Likewise, transactions to BitMex began to be reported as high risk by platforms such as Chainalysis. Due to all this legal conflict, Arthur Hayes decided to resign as CEO of the company and a new management train was appointed who has implemented a new KYC (know-your-customer) plan that has not pleased the user community much.

In addition to all this drama, a user of the platform also initiated a lawsuit against the firm in November last year, accusing it of market manipulation. These events have complicated the legal landscape of BitMex, an exchange that, despite everything that happened, is still operating.