Crypto Derivatives Exchange BitMEX Will Face Money Laundering Trial In March Next Year
We now know the official date on which the trial for the BitMEX case will take place. March 28th, 2022 is the date, which is about 18 months following the initial announcement of the charges levied against the platform.
BitMEX is a platform specializing in cryptocurrency derivatives. It has been the subject of many business-related legal cases, and it had been charged with money laundering in September 2020. The platform, along with its respective founders, had been under the scrutiny and monitoring of the appropriate authorities since 2020, a development that had irritated the markets to a great extent. Charges had been made against Arthur Hayes (former CEO and co-founder), Benjamin Delo (another co-founder), and Samuel Reed (the CTO). In related news, the platform’s head of activities and processes related to business development, Gregory Dwyer, also faces charges; however, he is yet to make an appearance, although he did surrender himself to the authorities last month as per the latest developments.
Multiple violations
The aforementioned individuals have been charged with multiple violations pertaining to KYC, laws concerning anti-money laundering, and the very important Bank Secrecy Act. These accusations had been made via the CFTC (Commodity Futures Trading Commission) as well as the Department of Justice.
BitMEX had been registered in the island country of Seychelles in East Africa, a decision that was made thanks to Hayes’ opinion that it was much easier to successfully bribe the local authorities there. Hayes had since also decided to step down from his position as Chief Executive Officer in October of last year.
As if the situation were not bad enough for BitMEX, it had also been previously involved in multiple other business and legal-related lawsuits. One of the more infamous cases had been the one filed by the traders Vitaly Dubinin and Yaroslav Kolchin, through whom it had been revealed that the platform had been complicit and quite active in open manipulation of the market as well as unregistered trading. To make matters worse, the platform was also accused of ‘looting’ $440 million during the time when the investigation was still active, and BitMEX was made consciously aware of it.
BitMEX reputation badly damaged
Prior to the accusations, the platform was extremely popular and was considered to be a top-notch derivatives platform. But alas, numerous investors fled from BitMEX following the charges, and it has now lost much of the former glory it once held.
As of right now, not only has BitMEX experienced a rapid decrease in both activity as well as usage, but the abovementioned executives could potentially face a maximum of 5 years in prison in addition to $250K in fines if found guilty.
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