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CFTC filed a lawsuit against Bitmex and its founders
The U.S. URGE -FIRE TRAING (CFTC) filed a lawsuit against the Bitmex cryptocurrency derivatives exchange and its owners, including the co -founder and CEO of Arthur Hayes. They are accused of managing an unregistered trading platform and violation of CFTC rules in terms of KYC/aml procedure.
Bitmex bin Comes and Samuel Reed, parent companies HDR Global Tradition Limited and 100x Holdings Limited, as well as ABS Global Tradeing Limited, Shine Effort Inc Global Services (Bermuda), are also. The lawsuit will be considered by the court of the Southern District of New York.
Additionally, the US Department of Justice presented Hayes, the case, Reed, and the head of the Bitmex business development Greg Duyer accusations of violation of the US Law on Banking Secrets.
According to representatives of the department, Reed (CTO) was arrested this morning in Massachusetts, where he would appear before the court. Hayes, Duir still remain free.
“We argue that the four defendants through their company owned by cryptocurrencies called BitMex deliberately violated the law on banking secrets, evading the requirements of the United States India encourages regarding the counteraction of money laundering,” the FBI Deputy Director William Suini said in a statement by the Deputy Director of the FBI.
Lawyer Jake Chervinsky believes that the accusation of the US Ministry of Justice deserves the most attention. The maximum punishment for Hayes and his business partners on charges are 5 years in prison.
🚨 The CFTC Just Charged Bitmex with Illegly Operating a Derivatives Trading Platform.
But the * Much * Bigger News: USAO-SDNY HAS Indicted Arthur Hayes & Colleagues on Criminal Charminal Bank Secrecy Act Violations. Maximum Penalty: 5 Years in Prison.https: // t.CO/HSMAC54S5B
– JAKE CHERVINSKY (@Jchersky) October 1, 2020
In Bitmex, they disagree with the prosecution and are ready to defend their interests in court. Representatives of the exchange claim that they have always observed US laws and adhered to instructions from regulators.
In Response to the U.S. CFTC and Doj FILINGS, We’ve Posted A State Blog: https: // t.CO/TCMF7IVMMN
– Bitmex (@Bitmex) October 1, 2020
Against the backdrop of these events, the price of bitcoin dropped sharply to the stamps of about $ 10,500.
Source: BTC/USD Bitstamp Exchange from TradingView.
Despite the situation, Bitmex processed the conclusions in the standard mode at 17:45 UTC. The exchange promised to implement the following conclusions at 8:00 UTC and 13:00 UTC (October 2).
Pretty Impressed TBH. Took Soome Risk Off Mex, But Not All. Still Want to Make Money.
– Crypto_c (@cryptoc_xbt) October 1, 2020
According to Glassnode estimates, there is 170 thousand BTC on BitMex accounts.
According to Our Data, Around 170,000 $ BTC (~ $ 1.8 Billion USD) are Being Held in #Bitmex Wallets.
That’s almost 1% of the Circulating #Bitcoin Supply.https: // t.CO/AVHMJDN1B2 PIC.Twitter.COM/SF6ahcauf
– Glassnode (@glassnode) October 1, 2020
Recall that in May, The Bitcoin Manipulation Abatement LLC (BMA) sued Bitmex, accusing the exchange of illegal activities in the United States, manipulating the cryptocurrency market, fraud, unscrupulous business practices, money laundering and illegal management of attracted funds.
In August, BitMex introduced new verification rules, according to which users need to confirm the address of residence and provide identification documents. Innovations do not apply to corporate customers.
Previously, the parental company was restructuring the exchange, as a result of which 100x Group was created to manage the exchange. Then the company noted that their plans go far beyond BitMex.
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