According to a court document, Alexander Hoeptner, the former CEO of BitMEX, is suing the cryptocurrency derivatives marketplace for $3.4 million for breach of contract and wrongful termination.
In January 2021, Hoeptner started working for the Seychelles-registered exchange as top executives at HDR Global Trading Limited, BitMEX’s owner and operator, were being sued for allegedly facilitating illegal trading.
Hoeptner left BitMEX in October 2022
Hoeptner’s departure from the company was previously mentioned but without further information. Hoeptner now asserts that he received a letter of termination citing, among other things, the misappropriation of funds and failure to perform duties.
“Such termination is wholly wrongful and without basis,” the court filing said.
Hoeptner claims that BitMEX owes him a total of $3.4 million, which includes $2.4 million for his second-year bonus and smaller sums for the rest of his wages, relocation costs, and housing, as evidenced by the court document.
“At the direction of the founders and the board, I put my personal and family lives on hold in order to be on the ground managing operations in Singapore and Hong Kong.” “I’m disappointed that it has gotten to the point that legal proceedings are necessary, but I’ve been left with no choice.”
Hoeptner told CoinDesk
According to documents, Hoeptner moved around a lot while serving as CEO of BitMEX, dividing his time between Singapore, Germany, and Hong Kong.
However, sometime between July and August 2022, the company informed him that there was a chance he might not get his second-year bonus or any compensation for his relocation, citing “extensive cost-cutting and restructuring program which involved numerous layoffs.”
According to the filing, his relocation costs stood at $230,000 at the time. He received a letter of termination a few weeks later.
The cryptocurrency exchange recently reduced its workforce by 30% in an effort to return to its original focus on trading derivatives.
Arthur Hayes, the former CEO of BitMEX, pleaded guilty to charges of purposely failing to establish an anti-money laundering (AML) program at the exchange and was given a two-year probationary period earlier this year.