BitMEX faces a lawsuit for money laundering, racketeering, manipulation of crypto markets and more

BitMEX, one of the world’s largest crypto derivatives platforms, has been accused in court of being ‘deliberately set up’ to facilitate ‘a number of illegal activities’.

The charges were filed in a new case by BMA LLC in the Northern District Court in California on May 16.

BitMEX’s parent company, HDR Global Trading, and the company’s top executives – Arthur Hayes, Ben Delo and Samuel Reed – have been accused of being involved in or aiding racketeering, money laundering and the operation of an unlicensed money transfer business. 

The case alleges that the accused engaged in these illegal activities and others, the scale of which is ‘ truly stunning ‘.

The plaintiff cites several sources, according to which 15% of the trading volume of BitMEX for 2019 – worth about $ 138 billion – is due to traders from the United States.

This means that, according to the exchange itself, it processes about $ 3 billion in remittances daily without a license in the United States.”

This is a record amount of such illegal activity in the entire history of US monetary regulation. ”- claims the plaintiff.

BME LLC accused the defendants in conspiracy to conduct their business through ‘ model racketeering ‘, crypto market manipulation and other illegal activities.

The exchange allegedly allows money to be laundered and the market to be manipulated by allowing users to create multiple unconfirmed and anonymous accounts without a deposit and withdrawal limit.

Court documents allege that BitMEX uses server problems and interruptions to accept or refuse market orders during particularly volatile periods in order to increase price fluctuations and trigger as many liquidations as possible.

All the details related to the accusations fit in over 100 pages.