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BitMEX, cryptocurrency derivatives exchange, is being sued in the United States

BitMEX and its executives have been accused of engaging in racketeering, money laundering, wire fraud, and unlicensed money transmission.

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A new lawsuit accuses BitMEX of illegal activities like money laundering

One of the world’s largest crypto derivatives exchanges, BitMEX, is facing a lawsuit that accuses the exchange of being deliberately designed, from the ground up to facilitate a myriad of illegal activities. Filed against HDR Global Trading, the parent of BitMEX, the lawsuit also named the three co-founders of the exchange – Arthur Hayes, Ben Delo, and Samuel Reed – along with ABS Global Trading, and collectively accused all of them of the violations.

Crypto exchange BitMEX’s executives stand accused of engaging in or abetting multiple crimes that include racketeering, money laundering, and operating an illegal money transmitting business. The new lawsuit claims that BitMEX’s executives have, in a brazenly, lawless manner, engaged in these illicit activities and a host of others whose magnitude is purported to be truly staggering. The plaintiffs claim that BitMEX’s executives maintain close connections to the US and the Northern District of California.

The plaintiff further alleged that BitMEX operates unlicensed money transmitting business.

The lawsuit reported:

“According to Defendants’ own data, Defendants’ unlicensed money transmitting business admittedly processed, on average, $3 billion of illegal and unlicensed money transfers each day, all in violation of United States federal statute…, which is the record volume for such unlawful activity in the entire history of the monetary regulation in the United States.”

BMA LLC, which is the plaintiff in this case, accuses BitMEX and its operator of conspiring to conduct the business through a pattern of racketeering activity and engaging in the crypto market manipulation, fraudulent business dealings, wire frauds, and many other illicit schemes. The plaintiff further notes that the defendant exchange BitMEX provides traders with much high trading leverage for highly liquid derivatives, which are purportedly calculated based on prices of two or three illiquid spot exchanges.

BitMEX allegedly enables manipulators to operate illegally by allowing them to open an unlimited number of anonymous and unverified accounts, without trading or withdrawal limits. BitMEX is not new to facing lawsuits. The exchange was also named among seven crypto firms implicated in a series of new lawsuits alleging violations of the US securities laws.

Shared with The Block, an HDR spokesperson stated:

“BMA has recently emerged as a serial filer of claims against companies operating in the cryptocurrency space and is widely recognized for operating just like a patent troll. We will deal with this complaint through a normal litigation process and are entirely confident the court will see the claim for what it is.”

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