The American regulator brought charges against the BitMEX exchange. Bitcoin fell $ 400
The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against the major crypto derivatives exchange BitMEX. The marketplace and its executives are accused of maintaining an unregistered trading platform and violating anti-money laundering regulations.
The defendants are BitMEX CEO Arthur Hayes, co-founders Ben Delo, and Samuel Reed, parent companies HDR Global Trading Limited and 100x Holdings Limited, as well as ABS Global Trading Limited, Shine Effort Inc Limited, and HDR Global Services (registered in Bermuda).
The goal of the CFTC's crusade against BitMEX is to "suppress illegal acts and practices, and harmonize their legal compliance procedures with the law."
According to the Commission, since its inception in 2014, BitMEX has offered traders illegal cryptocurrency trading services with borrowed funds in the amount of about $ 1 trillion. At the same time, the exchange did not register with the CFTC and did not bother with the introduction of KYC and AML procedures for its clients.
The New York County attorney also accuses Hayes, Case, Reed, and Gregory Dwyer, head of BitMEX's business development, of violation and conspiracy to violate the Bank Secrecy Act. If convicted, the leaders face up to five years in prison and a $ 250,000 fine.
According to FBI Assistant Director William Sweeney, “One of the defendants went so far as to brag about a company registered in a jurisdiction outside the United States because bribery of regulators in that jurisdiction cost no more than 'a coconut.' Through the hard work of our agents, analysts, and CFTC partners, the defendants will soon find out that the cost of their alleged crimes is not comparable to that of tropical fruits, but rather could lead to fines, restitution, and federal jail time. ”
The Justice Department said in a statement that Reed, the CTO of BitMEX, was arrested Thursday morning in Massachusetts. Hayes, Case, and Dwyer remain at large for now.
The cryptocurrency market reacted painfully to the news of the case against BitMEX - Bitcoin fell by more than $ 400.
In July 2019, reports surfaced that the CFTC had become interested in BitMEX over speculation that US residents could use the platform despite a formal ban. The BitMEX Terms of Service expressly prohibit residents of the United States, some provinces of Canada, China, and a number of other countries from using the trading platform.