The corporate regulator is suing iSignthis chief executive John Karantzis alleging that he failed to adequately disclose how revenues that resulted in hundreds of millions of bonus shares being issued to him and key staff were earned.

In a statement of claim filed to the Federal Court on Monday, the Australian Securities and Investments Commission said that Mr Karantzis had engaged in misleading and deceptive conduct when he told analysts that just 15 per cent of revenues earned during the bonus calculation period were non-recurring, when it was in fact closer to 75 per cent.