LONDON, Oct 1 (Reuters) – A Florida-based silver miner has filed a damages declare towards JPMorgan, accusing the financial institution of manipulating the silver market to push costs so low the corporate’s mine needed to shut.
The grievance, filed on Tuesday within the U.S. District Court docket for the Southern District of Florida, mentioned Hidalgo Mining Corp raised $10.35 million from buyers to finance a silver mine in Mexico that started manufacturing round 2012 and stopped in 2014.
Silver costs averaged round $31 an oz. in 2012 and $19 an oz. in 2014.
JPMorgan declined to remark.
Hidalgo’s declare, seen by Reuters, makes use of as proof data from an investigation by U.S. regulators which discovered that JPMorgan employees between 2008 and 2016 despatched faux purchase and promote orders into metals and Treasuries markets to maneuver costs of their favour.
Merchants say this system, generally known as spoofing, is a brief time period buying and selling tactic reasonably than a way of long-term value suppression.
JPMorgan final yr agreed to pay greater than $920 million to settle the investigation.
The financial institution additionally paid $15.7 million final week to settle a category motion lawsuit introduced by buyers who mentioned the manipulation had prompted them losses. learn extra
Reporting by Peter Hobson
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