A U.S. District Court has filed a lawsuit against controversial crypto derivatives exchange BitMEX. The plaintiff, BMA LLC, has accused BitMEX’s parent arm and operators of engaging in wire frauds, money laundering, and other illicit activities.
May 18, 2020 | AtoZ Markets – 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.”
BitMEX executives have landed in yet another legal tussle
The lawsuit was filed in a California district court by BMA LLC on May 16. BitMEX operator HDR Global and exchange’s top executives Arthur Hayes, Ben Delo, and Samuel Reed stand accused of multiple crimes in the lawsuit.
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 also alleged that BitMEX illegally offered its high-risk trading services to U.S. citizens.
It read that the exchange reported almost 15 percent of its trading volume from the U.S. regions in 2019. That amounts to about $138 billion worth of trades that BitMEX conducted without obtaining a money transmitting license in the U.S.
The new lawsuit accuses BitMEX of engaging in market manipulation
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 wrote that the exchange uses “BXBT index price for highly liquid derivatives” that takes prices from “two or three illiquid spot exchanges.”
According to the court documents, 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 companies implicated in a series of new lawsuits alleging violations of the US securities laws.
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