March 28, 2024

BitMEX accused of racketeering and fraud

BitMEX accused of racketeering and fraud

BitMEX exchange executives are accused of participating in or facilitating the following crimes – racketeering, launderingmoney, fraud, unlicensed money transfers.

BMA LLC blames maternal executivesThe HDR Global Trading company (Arthur Hayes, Ben Delo and Samuel Reed) is that BitMEX was “specially built from the ground up in order to contribute to a huge number of crimes.”

Charges were filed with the U.S. District Court for the Northern District of California on May 16.

The plaintiff claims that about 15% of the trading volumeBitMEX for 2019 (about $ 138 billion) falls on US traders. This means that the exchange made money transfers without a proper license in the United States.

Parent company HDR Global Trading is registered in Seychelles. The plaintiff states that earlier, answering the question why the company was created on the islands, Hayes publicly replied:

Seychelles is cheaper to bribe than the United States. We paid some pennies for registration.

In addition, the BMA accuses the management of the exchange ofconspiracy “to conduct business through racketeering” and to manipulate markets and defraud. It is believed that the exchanger allows attackers to open an unlimited number of anonymous and unverified accounts with no trading or withdrawal limits. 

The lawsuit states that BitMEX intentionallyoverloads the server and uses “system overloads” to accept and reject certain orders during market volatility. This is done in order to increase volatility and provoke maximum liquidation. 

The full prosecution document exceeds 100 pages.

Let us recall that in April BitMEX topped the anti-rating in terms of traffic. Exchange traffic decreased by 40%, from 13.4 to 8 million visits. 

Subscribe to ForkNews on Telegram

Based on materialscointelegraph.com