BitMareX cryptocurrency exchange and the company's executives have been accused of committing and participating in crimes such as fraud, money laundering, fraud and unauthorized money transfer. The allegations were made in a new lawsuit filed by BMA LLC in the United States Court of Appeals in the Northern District of California on May 16.
The plaintiff has accused BitMEX's parent company, HDR Global Trading, and senior exchange executives, Arthur Hayes, Ben Dello, and Samuel Reid, of committing or participating in money laundering, fraud and unauthorized money transfers. The lawsuit alleges that the defendants were involved in "illegal and unlawful" activities.
Why is this case being pursued in California?
The BMA LLC claims that despite their denials, BitMEX executives have close ties to the United States and the Northern California region. The plaintiff cites several sources who are said to be close to the company and have recently revealed in the media that almost 15% of the 2019 trading volume on BitMEX, valued at approximately $ 138 billion, was attributed to traders in the United States. This means that according to exchange data, BitMEX has apparently processed an average of $ 3 billion a day in transfers without a money transfer license in the United States. The plaintiff claims: "This means a record of such illegal activities throughout the history of the United States Monetary Union." The parent company HDR Global Trading is said to be based in Seychelles. Asked why the company operates in Seychelles, Hess said, "Sicily is cheaper to bribe than the United States," and when asked how much bribes should be paid to Sichel to register BitMEX, he replied: " The size of a coconut »
The BMA LLC accuses the defendants of plotting to advance the business by participating in crypto market manipulation, technology fraud, illegal transactions, and several other illegal projects. According to the lawsuit, BitMEX provides a very high trading volume (100 times) for very fluid derivatives (liquid), which is said to be calculated based on the prices of two or three Spot Liquid exchange offices. The exchange appears to allow fraudsters to open an unlimited number of unconfirmed unidentified accounts without restriction on transactions and withdrawals. The document claims that BitMEX rejected or confirmed certain orders during market fluctuations, freezing servers and intentionally overloading the network.
In another part, the lawsuit refers to the confessions of the defendants after several denials; The fact that the exchange trades in its favor and against the interests of customers, and uses internal information about the trading positions of its customers. The full details of these claims are listed in more than 100 pages. A spokesman for HDR Global Trading told Kevin Telegraph:
We are aware of the complaint of BMA LLC, formerly known as Bitcoin Manipulation Abatement, LLC. By examining the draft version of their complaint, which is clear from the information gathered on the Internet, we emphasize that we will seriously defend ourselves.
BMA has recently become a serial whistleblower against cryptocurrency companies and is known as a patent troll.
Recent disputes
As recently reported, BitMEX has continued to lose interest and bitcoin performance since the historic fall of the market in March, and has sought to maintain its market share against competitors such as Binance Futures. After the Black Thursday crash, BitMEX saw a nearly 40 percent drop in bitcoin resources between March 13 and April 9.
