BitMEX Charged for Unregistered Trading by Federal Prosecutors & CFTC

October 2, 2020

Digital Currency

The U.S. CFTC or Commodity Futures Trading Commission declared on Thursday that BitMEX, CEO Arthur Hayes, firm owners Samuel Reed and Ben Delo, and corporate entities 100X Holding Limited, HDR Global Trading Limited, Shine Effort, HDR Global Services (Bermuda), ABS Global Training Limited alleged offered the U.S. clients illegal cryptocurrency trade practices. 

So also, Audrey Strauss, the acting U.S. Lawyer for the Southern District of New York declared that Hayes, Delo, Reed, and Gregory Dwyer (BitMEX’s first representative) were being accused of abusing the Bank Secrecy Act and trick to disregard the demonstration. 

In an official statement, the CFTC affirmed that BitMEX got some $11 billion in bitcoin stores and made more than $1 billion in expenses, “while leading critical parts of its business from the U.S. also, tolerating requests and assets from U.S. clients.” 

The CFTC accused BitMEX of executing fates exchanges on an unregistered board, offering illicit choices, neglecting to enlist as a fates commission shipper, neglecting to enlist as an assigned agreement market, neglecting to actualize legitimate know-your-client rules, and different checks, as per a connected lawful documenting. 

BitMEX, which has allegedly been under scrutiny by the CFTC since at any rate July 2019, actualized obligatory KYC in April of this current year.

BitMEX calls itself as the world’s biggest cryptocurrency derivatives platform with billions of dollars’ worth of exchanging every day. However, BitMEX has never registered with the CFTC in any way and has not complied with the rules and regulations that are required to the vitality and integrity of the U.S. markets.

Besides this, the agency wants the defendants to distribute profits, share full restitution to its clients, pay civil fines, and repeal all contracts and agreements with any clients if those agreements are against the law.

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