Lawsuit against BitMEX for fraud and extortion | Coin Hero

A U.S. court has approved a lawsuit because of the crypto-derivatives platform BitMEX. It comes to allegations of transfer-laundering fraud to money

BitMEX could stand before a new dispute. Because in the United States district court for the Northern District of California was filed against the company with a new lawsuit.

From actual court records from the 16. May indicate that there is a lawsuit against the company, with headquarters on the Seychelles. BitMEX is used as a crypto-platform by HDR Global Trading Limited, ABS Global Trading Limited and other Mitbegrü plants.

The company was founded by CEO Arthur Hayes, CTO Samuel Reed and Ben Delo.

Suspected cases of fraud and market manipulation

Too known to the plaintiff, the company, BMA LLC. Not. Attention, but the company provided, among other things, by a recent target lawsuit against Ripple, as well as against the stock market Binance. In both cases the companies belonged to the action-supporters.

From the documents submitted it appears that the plaintiff accused the operators of several illegal activities. Fraudulent management is an accusation. Wire fraud, money laundering and market manipulation, complete the application.

BitMEX to have offered US customers illegally services without authorisation as a provider of money transfer services. The risky investment products have brought the organization in the past year, nearly 138 billion U.S. dollars in sales. These were, in turn, more than 15 % of the US trading volume of the platform.

BMA LLC. the court, therefore, asked to a process of approval. The possible process aims to ensure that the US-registered company, ABS Global controlled all-embracing of HDR and will be operated in. The most important allegation is: ABS is basically just a kind of deck name – “alter Ego” – for BitMEX itself.

The defendants have all along BitMEX is the only therefore, developing, financially from the alleged extortionist activities and other illegal measures to benefit, which the defendant again billions in profits should, “as the plaintiff is.

Also suspected of insider trading & other illegal aspects

The Prosecutor’s office indicates, BitMEX and the other defendants would provide customers with trading opportunities, the capital, with a leverage of up to a factor of 100 can be invested.

In addition, BitMEX “manipulators and money launderers should have” the opportunity to be unnoticed on an unlimited number of control-free trading accounts active. Allegedly, there was also targeted “Server-Freezing” and Overload the system, with the aim to open the fraud.

The BMA-charge States, the market manipulation support, which led to significant BitMEX-internal price fluctuations and, as a rule, the rights of “forest fires” on other exchanges entailed. In fact, I developed the stock market to an Instrument “is an exquisite Instrument for unsavory crypto market manipulations”.

The lawsuit against BitMEX comes in a Moment in which the stock market posted again a decline in trading volumes. In December of the year 2019, a significant damage for the exchanges-a reputation to be moved to an alleged “technical issue” within a few hours of a 50-percent slump in the Bitcoin rate, was created.

The BitMEX-BTC fell last March at the time of the price lows at about 3,800 USD to a whopping 40 %. At that time, a massive multi-million deduction from crypto reserves by investors launched in USD.