Co-Founder Nicholas D’Arcangelo files lawsuit against colleagues after compulsory expulsion. In 2021, Nicholas D’Arcangelo founded The Funded Trader with three partners. According to reports, the proprietary platform generates monthly revenue in the neighborhood of multiple seven figures.

Co-founder of The Funded Trader and former chief marketing officer Nicholas D'Arcangelo filed a lawsuit against the proprietary trading company and its three top executives. The complaint alleges that the proprietary trading company abruptly terminated his health insurance without adequate notice and forcibly reallocated his company shares. D'Arcangelo owned 19.875% of the company that ran the proprietary trading platform.

Earlier this week, the lawsuit was filed naming the corporation, its CFO Carlos Rico-Ospania, COO Matthew Racz, and CEO Angelo Ciaramello as defendants. According to the complaint, when these three executives pushed D'Arcangelo out of the company earlier this year, they violated the terms of the agreement.

According to the 66-page court document, D'Arcangelo, a forex trader, and the three other parties involved in the complaint established The Funded Trader as a company in 2021.

The plaintiff Olson and the defendants Ciaramello and Rico signed TFT's first business agreement on May 12, 2021, the day the firm was founded, according to the court filing. In this first operating agreement listed the members' equity holdings as follows: Ciaramello (25%); Olson (30%); Rico (20%); and D'Arcangelo (25%).

D'Arcangelo's attorneys stressed that The Funded Trader benefited greatly from his enormous social media following, which consists of more than 40,000 TikTok followers and over 250,000 Instagram followers.

The court statement said that TFT heavily relied on and utilized the Plaintiff and Forex League's extensive and engaged customer base and contacts for its advantage since its establishment. According to Racz, TFT was generating monthly revenues in the multiple seven-figure range by the end of 2022, and it had also distributed over $30 million in shared profits to over 30,000 retail traders, TFT has recently disclosed on social media that its rewards currently exceed $100 million.

Ciaramello purchased 5% of D'Arcangelo's shares in The Funded Trader for $50,000 in August 2021. D'Arcangelo now claims that Ciaramello spent the money he made from the business for personal expenses, including his own private crypto trading, in addition to buying the shares.

In the lawsuit, Ciaramello and others face accusations of operating a number of competing companies under Easton Consulting Technologies LLC and violating their fiduciary obligations to The Funded Trader. When allegations against LeveledUp Trader surfaced, Easton also gained notice.

Now, with his 19.875% stake in the business, D'Arcangelo is expressing his wish to continue being a TFT member. Alternatively, he is willing to give up his interests for a fair market value that exceeds $75,000 net of expenses and interest. He is requesting, among other things, interest and damages in the form of additional money. In addition, he is asking for a jury trial.