on the crypto
The US Commodity Futures Trading Commission (CFTC) and federal prosecutors accuse BitMEX of facilitating transactions on its platform without requiring user registration, and other violations of the law.
The allegations against BitMEX
The CFTC announced Thursday that BitMEX, CEO Arthur Hayes, company owners Ben Delo and Samuel Reed, and companies HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited and HDR Global Services (Bermuda) Limited would have favored illicit trading services with crypto derivatives accessible to US clients.
Meanwhile, Audrey Strauss, the interim US attorney for the Southern District of New York announced that Hayes, Delo, Reed and Gregory Dwyer (the first BitMEX employee) are accused of violating the Bank Secrecy Act and conspiracy to violate the act. Reed has already been arrested; the others remain fugitives, according to an SDNY press release.
"One defendant went so far as to brag about the company incorporated in a jurisdiction outside the United States because bribing regulators in that jurisdiction cost only 'a coconut,'" said the assistant director of the FBI. William Sweeney Jr. in a statement.
"Thanks to the diligent work of our CFTC agents, analysts and partners, they will soon learn that the price of their alleged crimes will not be paid in tropical fruit, but rather could lead to fines, reimbursements and jail time."
The huge trading volume of BitMEX
In a press release, the CFTC said BitMEX has received approximately $ 11 billion in bitcoin deposits - here the quotation in real time - and grossed over $ 1 billion in commissions. BitMEX, which has reportedly been investigated by the CFTC since at least July 2019, enforced the KYC regulation mandatorily in April this year.
“BitMEX aims to be the largest cryptocurrency derivatives platform in the world with billions of dollars in trading every day. Much of this trading volume and profitability comes from its broad access to US markets and customers, ”the document states. "However, BitMEX has never been registered with the CFTC in any way and has failed to comply with the laws and regulations essential to the integrity and vitality of US markets."
"Strongly disagree"
An external spokesperson for HDR Global denied the allegations. "We strongly disagree with the US government's heavy decision to bring these allegations, and intend to defend the allegations forcefully," the statement said.
"From our early days as a start-up, we have always tried to comply with applicable US laws, as those laws were understood at the time and based on available guidance."
BitMEX's official Telegram group later expanded on this, adding that the platform was working normally and recommending users to contact its support page if they have any further questions.
