The technical director of the platform is already under arrest.
The owners of the popular digital asset exchange BitMEX were accused of illegal doing business in the United States, non-compliance with the bank secrecy law, as well as violating the KYC (customer identification procedure) and AML (anti-money laundering) rules. With this wording, specialists from the American Commodity Futures Trading Commission (CFTC) and the US Department of Justice (DOJ) filed a lawsuit. Information about this appeared on the official website of the trading platform.
According to CFTC representatives, the BitMEX team was operating in the United States without permission. Technically, the exchange provided intermediary services for clients to conduct market transactions. The CFTC team believes that the marketplace was not eligible for such activity without obtaining the necessary permits.
The prosecution drew attention to the fact that BitMEX representatives managed to earn about $ 1 billion in fees that the platform has been charging for operations since 2014. The regulators sued four representatives of the exchange. These included:
- BitMEX CEO Arthur Hayes.
- Co-founder of BitMEX Exchange Ben Delo.
- Platform CTO Samuel Reid. According to DOJ, he is under arrest.
- Greg Dwyer, Head of Business Development at BitMEX.
The prosecution also pointed out companies affiliated with BitMEX in the suit, including HDR Global Trading Limited.
The BitMEX team disagrees with the accusations against them.
This is how the representatives of the trading platform explained their vision of the situation:
All the accused, according to the well-known lawyer Jake Chervinsky in the crypto community, may face imprisonment for up to 5 years.
Many members of the crypto community have come out in support of BitMEX. For example, the Bitcoin Magazine team noted that regulators do not pay attention to the mistakes of many companies – representatives of the traditional finance market. At the same time, they show excessive interest in organizations from the crypto space.
Amid the accusations against BitMEX, representatives of the platform changed the schedule for processing user requests for withdrawal of funds.
This message appeared on the exchange blog.
Members of the crypto community noted that bitcoin totaling $ 2 billion is stored in BitMEX wallets. Against the background of information about the platform’s problems, the BTC rate went down. As of the time of writing the news (08:02 ISS), the cryptocurrency is trading at $ 10,579 (-2.25% per day).
According to Bloomberg, the CFTC team initiated an investigation into BitMEX in 2019. It is noteworthy that earlier the exchange was already accused of conducting illegal activities in the United States. The authors of the lawsuit, filed in court in May 2020, were representatives of The Bitcoin Manipulation Abatement LLC (BMA).