Another Lawsuit Against BitMEX Crypto Exchange
On May 16, BMA LLC filed a lawsuit against the Seychelles derivative exchange BitMEX in the California District Court (USA).
The company sued its co-founders Arthur Hayes, Ben Delo, and Samuel Reed. The exchange is accused of being “deliberately created” for manipulating and committing “a myriad of other illegal actions”. The marketplace is charged with the following points:
- manipulation of the crypto market and prices;
- dishonest business practices;
- money laundering and illegal fundraising activities.
The lawsuit claims that the defendants “with particular arrogance” participated in these illegal actions, the scale of which is “truly stunning”.
BitMEX Illegal Trading Volumes
The lawsuit clarifies that in 2019, almost 15% of all transactions on the BitMEX exchange, which is approximately $ 138 billion, were committed by US traders. The exchange’s data indicates that it processes money transfers on average $ 3 billion daily without a license to transfer money in the United States. This represents “the record amount of such illegal activity in the history of monetary regulation in the United States.”
“Based on the data from the BitMEX exchange, it must be recognized that the service processed on average $ 3 billion a day of illegal and unlicensed money transfers, violating US federal laws”, — the lawsuit says.
It is also noted that BitMEX provides traders with extremely high leverage (100x) for highly liquid derivatives. Which are supposedly calculated based on the prices of “two or three illiquid spot exchanges”.
The document claims that BitMEX covers its manipulations with “technical problems on the servers”. To accept or reject specific trading orders during periods of high market volatility. All this supposedly makes the BitMEX exchange itself “a thoughtful tool for manipulating the cryptocurrency market”.
At the moment, another lawsuit has been filed against BitMEXIn December, early site investors accused its management of not providing them with a stake in the company that reached $ 50 million. The amount of claims is $ 540 million.
In March, British authorities warned against using the BitMEX crypto exchange. The Financial Supervision Authority of the country reported that the derivative platform did not receive permission to work in the state.
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