The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against the major crypto derivatives exchange BitMEX. The marketplace and its executives are accused of maintaining an unregistered trading platform and violating anti-money laundering regulations.
CEO of BitMEX Named DefendantsArthur Hayes, co-founders Ben Delo and Samuel Reed, parent companies of HDR Global Trading Limited and 100x Holdings Limited, as well as ABS Global Trading Limited, Shine Effort Inc Limited and HDR Global Services (incorporated in Bermuda).
The goal of the CFTC crusade against BitMEX is "to suppress illegal actions and practices, as well as to harmonize their procedures for legal compliance with the law."
According to the Commission, BitMEX since itscreation in 2014 offered traders illegal cryptocurrency trading services with borrowed funds in the amount of about $ 1 trillion. At the same time, the exchange did not register with the CFTC, and did not bother introducing KYC and AML procedures for its clients.
The New York County attorney also accuses Hayes,Case, Reed and Gregory Dwyer, head of business development at BitMEX, in violation and conspiracy to violate the Bank Secrecy Act. If convicted, the leaders face up to five years in prison and a $ 250,000 fine.
According to FBI Assistant Director William Sweeney(William Sweeney), “One of the defendants went so far as to brag about a company registered in a jurisdiction outside the United States, because bribing regulators in that jurisdiction was worth no more than 'a coconut.' Through the hard work of our agents, analysts and CFTC partners, [the defendants] will soon learn that the cost of their alleged crimes is not comparable to that of tropical fruits, but rather could lead to fines, restitution and federal jail time. ”
The Justice Department said in a statement that Reed, the CTO of BitMEX, was arrested Thursday morning in Massachusetts. Hayes, Delo and Dwyer remain at large for now.
The cryptocurrency market reacted painfully to the news of the case against BitMEX - Bitcoin fell by more than $ 400.
In July 2019, there were reports thatThe CFTC has become interested in BitMEX, due to the assumption that US residents can use the platform, despite the formal ban. The BitMEX Terms of Service expressly prohibit residents of the United States, some provinces of Canada, China and several other countries from using the trading platform.</p></p>