The CFTC filed a lawsuit against the BitMEX exchange and its owners, accusing them of illegally conducting business in the United States and violating KYC and AML rules. The bitcoin exchange rate fell from $10,950 to $10,440.
The US commodity futures trading Commission has filed a lawsuit against the BitMEX cryptocurrency derivatives exchange in the southern district of new York. The defendants included BitMEX CEO Arthur Hayes, BitMEX co-founder Ben Delo, CTO Samuel Reed, and BitMEX business development Manager Greg Dwyer, as well as parent companies HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited, and HDR Global Services Limited (a branch in Bermuda).
The CFTC accused the exchange’s managers of failing to comply with anti-money laundering (AML) measures, violating the customer identification procedure (KYC), illegally operating in the United States, and intentionally violating the Bank secrecy Act. The Agency stressed that BitMEX operated in the United States without the permission of the CFTC.
The exchange operated in the United States as a specialized contract market, as well as a platform for trading swaps, options, and futures on BTC, ETH, and LTC. BitMEX acted as an intermediary in conducting urgent exchange operations, receiving bitcoins for transactions with cryptocurrency derivatives, without having the necessary licenses. According to the CFTC charge, the exchange has earned more than $1 billion in commissions since the beginning of 2014.
U.S. justice department
it reported that reed was arrested in Massachusetts and will soon appear in Federal court. Hayes, Delo, and Dwyer are still at large. According to the Agency’s estimates, the maximum penalty for BitMEX executives on the charges may be 5 years in prison. Against the background of this news, the price of bitcoin fell sharply, losing almost 5%.
she said that she started processing users ‘ requests to withdraw bitcoins and other crypto assets outside of the usual schedule. Previously, money was withdrawn from the exchange only once a day, at 16:00 Moscow time. Tomorrow, October 2, assets will be withdrawn at 11:00 and 16:00 Moscow time.
According to Bloomberg, the CFTC began investigating BitMEX in July last year. Previously, similar charges were brought against the exchange by Bitcoin Manipulation Abatement (BMA). Its management claims that BitMEX HDR Global Trading serves traders in the United States, being a fictitious company registered in the Seychelles.