fbpx
The Daily Chain
No Result
View All Result
  • News
    • All News
    • Assets
    • Bitcoin
    • Business
    • Editor’s Picks
    • Technology
  • Markets
    • Market Updates
    • Live Cryptocurrency Market Prices
    • Press Release
  • Features
    • Articles
    • Opinion
    • Interviews
    • Quiz
  • Education
    • Blockchain
    • Trading
    • Investing
    • Safety
  • Media
    • Video
    • Podcasts
  • Reviews
  • Asset List
  • News
    • All News
    • Assets
    • Bitcoin
    • Business
    • Editor’s Picks
    • Technology
  • Markets
    • Market Updates
    • Live Cryptocurrency Market Prices
    • Press Release
  • Features
    • Articles
    • Opinion
    • Interviews
    • Quiz
  • Education
    • Blockchain
    • Trading
    • Investing
    • Safety
  • Media
    • Video
    • Podcasts
  • Reviews
  • Asset List
No Result
View All Result
The Daily Chain
No Result
View All Result
Home All News

BitMEX Accused of a “Myriad of Illegal Activities” in Fresh Legal Tussle

Wayne Jones by Wayne Jones
20th May 2020
3 min read
2
Bit-MEX-Accused-of-a-Myriad-of-Illegal-Activities-in-Fresh-Legal-Tussle
2
SHARES
0
VIEWS
FacebookTwitterLinkedinTelegramEmailWhatsapp

On May 16, 2020, BitMEX, one of the world’s most popular cryptocurrency exchanges, was accused of engaging in or abetting crimes that include racketeering, money laundering, wire fraud and unlicensed money transmission. 

The allegations were made in a major new lawsuit filed by BMA LLC in the United States District Court for the Northern District of California. 

The plaintiff names BitMEX’s parent company, HDR Global Trading Limited, and co-founders Arthur Hayes, Ben Delo, and Samuel Reed, accusing them of facilitating “a myriad of illegal activities.”

The lawsuit also alleged that BitMEX illegally offered its high-risk trading services of about $138 billion to U.S. citizens. That staggering amount of trades on BitMEX was conducted without obtaining a money transmitting license in the U.S.

In response, a spokesperson for HDR Global Trading Limited, the owner and operator of the BitMEX cryptocurrency derivatives trading platform, confirmed that the exchange was aware of the complaint filed by BMA LLC, formerly known as Bitcoin Manipulation Abatement, LLC.

He went on to say that BitMEX will deal with the complaint via a standard litigation process and he is entirely confident the court will see the claim for what it is.

“Having reviewed a draft version of their complaint, which is clearly rehashed from information culled from the internet, we confirm we will be defending ourselves vigorously against this spurious claim,” he concluded.  

BMA has lately emerged as a serial filer of legal claims against businesses operating in the crypto space, and is widely known for operating just like a patent troll.

Other Allegations: Market Manipulation

The lawsuit also notes that BitMEX provides traders with extremely high trading leverage (100x) for highly liquid derivatives, which are allegedly calculated based on prices of “2 or 3 illiquid spot exchanges.” 

Moreover, the exchange purportedly enables manipulators and money launderers to operate illicitly by allowing them to open an unlimited number of anonymous and unverified accounts, without trading or withdrawal limits.

The document claims that BitMEX utilizes deliberate server freezes and fraudulent “system overload” events to accept or reject specific trading orders during volatile market conditions to worsen price fluctuations and trigger maximum liquidations.

All this allegedly makes BitMEX an exquisite ‘designer’ tool for unsavoury actors to manipulate cryptocurrency markets.

BitMEX has lost half of its market share in the past six months. A massive crypto withdrawal ensued on March 12 after a “technical issue” on the exchange crashed the bitcoin price by almost 40 % overnight.

BitMEX is No Stranger to Controversies

As recently reported, BitMEX is currently facing its early investors in a separate $540M lawsuit. In that case, the plaintiffs have accused the exchange and founder Hayes of cynically seeking to deny them their returns.

Similarly, controversies have surrounded two DDoS attacks, which triggered downtime on the exchange and have even prompted some industry actors to accuse BitMEX of being responsible for the crash of bitcoin prices in March. BitMEX was also one of the seven crypto firms implicated in a series of new lawsuits alleging violations of U.S. securities laws.

Tags: Bitmex lawsuitCrypto controversiesMarket manipulations
Share2TweetShareShareSendSend
Wayne Jones

Wayne Jones

Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, I cover trendy issues on digital currencies.

Related Posts

PayPal-Crypto
All News

PayPal reportedly eyeing purchase of Crypto Storage Platform Curv – Crypto Custody incoming?

4th March 2021
BTC Extends Its Rally Above $52K, while ETH Surges to New ATH
All News

Brave Enlists New Search Engine to Replace Google Browsers

4th March 2021
Bithumb investor has shares seized by Korean courts
All News

Report – former Bitmex CEO Arthur Hayes to surrender to US authorities

4th March 2021
Kings of Leon-NFT
All News

Kings of Leon Become FIrst Rock-Band to launch Album as limited edition NFTs

3rd March 2021
ETH Price Could Rally to $440 as DeFi Interest Surges
All News

ETH Price Flips Crucial Resistance Levels: Why Bulls Could Retest $2K

3rd March 2021
America’s IRS looking a lot closer at crypto transactions in 2020 tax returns
All News

Thailand SEC placates public after crypto draft law outcry

3rd March 2021
Next Post
Hashoshi: Bitcoin Post Halving, HUGE Chainlink news, and more! (Crypto Over Coffee ep. 15)

Hashoshi: Bitcoin Post Halving, HUGE Chainlink news, and more! (Crypto Over Coffee ep. 15)

Binance CEO Faces Heavy Backlash for Coinmarketcap Rankings and Involvement

Binance CEO Faces Heavy Backlash for Coinmarketcap Rankings and Involvement

Please login to join discussion
  • All News
  • Editor's Picks

PayPal reportedly eyeing purchase of Crypto Storage Platform Curv – Crypto Custody incoming?

Brave Enlists New Search Engine to Replace Google Browsers

Report – former Bitmex CEO Arthur Hayes to surrender to US authorities

Kings of Leon Become FIrst Rock-Band to launch Album as limited edition NFTs

ETH Price Flips Crucial Resistance Levels: Why Bulls Could Retest $2K

Join our newsletter!

Enter your email to receive our newsletter.


Don’t worry, we don’t spam
ADVERTISEMENT

Popular Posts

  • Coinbase-Bitcoin

    Coinbase publicly reveals it has held Bitcoin on its Balance Sheet since 2012

    0 shares
    Share 0 Tweet 0
  • MIT announces 4-year project that seeks to strengthen the Bitcoin Network Security

    0 shares
    Share 0 Tweet 0
  • Google Finance launches dedicated Crypto Section

    0 shares
    Share 0 Tweet 0
  • BTC Market Endures Bias Conflict: Why BTC Prices are Wobbling Around $50K

    0 shares
    Share 0 Tweet 0
  • Zilliqa News: Token Swap Now Complete With 98% tokens Exchanged For Native $ZIL

    0 shares
    Share 0 Tweet 0

Market Updates

ETH Price Could Rally to $440 as DeFi Interest Surges

ETH Price Flips Crucial Resistance Levels: Why Bulls Could Retest $2K

3rd March 2021
Bitcoin Revisits $50K As Goldman Sachs Restarts Its Crypto Trading Desk

Bitcoin Revisits $50K As Goldman Sachs Restarts Its Crypto Trading Desk

2nd March 2021
BTC Price Pops Over $48K Amid More Institutional Buying

BTC Price Pops Over $48K Amid More Institutional Buying

1st March 2021

Media

hashoshi-alts (2)

Altcoin Season Picks / Projects with Huge Potential

9th September 2020
cardano-ADA

Hashoshi: Cardano Shelley is live… but what’s next is WAY BIGGER

19th August 2020
hashoshi-alts

Hashoshi: Low Cap Alts you need to be watching in 2020

5th August 2020
fomohunt-podcast

FomoHunt Podcast – Joe Vezz & Jon Farjo: Tracking Social Sentiment Waves with Lunar Crush

30th July 2020
ethereum-hashoshi

Hashoshi: Ethereum 2.0, Chainlink, Bitcoin Price, and more!

27th July 2020
fomohunt-podcast

FomoHunt Podcast – Joe Roets: Behind the scenes of “Open source money”

24th July 2020
The Daily Chain

The Daily Chain is a news platform and educational hub founded in January 2019. We are dedicated to providing unique and informative daily content across all facets of the blockchain and cryptocurrency industry whether it be news, opinion pieces, technical analysis, reviews, interviews, podcasts and more.

LEARN MORE »

Recent Posts

  • PayPal reportedly eyeing purchase of Crypto Storage Platform Curv – Crypto Custody incoming?
  • Brave Enlists New Search Engine to Replace Google Browsers
  • Report – former Bitmex CEO Arthur Hayes to surrender to US authorities
  • Kings of Leon Become FIrst Rock-Band to launch Album as limited edition NFTs

Information

  • About
  • Contact
  • Site notice
  • Risk Warning
  • Privacy Policy

Categories

  • News
  • Markets
  • Features
  • Education
  • Media
  • Reviews

TheDailyChain © 2020. The Home of Digital Assets

No Result
View All Result
  • News
    • All News
    • Assets
    • Bitcoin
    • Business
    • Editor’s Picks
    • Technology
  • Markets
    • Market Updates
    • Live Cryptocurrency Market Prices
    • Press Release
  • Features
    • Articles
    • Opinion
    • Interviews
    • Quiz
  • Education
    • Blockchain
    • Trading
    • Investing
    • Safety
  • Media
    • Video
    • Podcasts
  • Reviews
  • Asset List

TheDailyChain © 2020. The Home of Digital Assets

At The Daily Chain, we are committed to protecting the personal data of our audience.
In light of the General Data Protection Regulation, we are asking our audience in Europe to consent to the use of cookies by The Daily Chain and its partners to continue to our site. These cookies are used to personalize your user experience (content and ads) and support and improve the site. Please click “I Agree, Continue to Site” below to consent to the use of this technology and continue to TheDailyChain.com. Visit our Privacy Statement to learn more. Cookie settingsAgree, continue to site
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

bitcoin
Bitcoin (BTC) $ 49,903.00 3.20%
ethereum
Ethereum (ETH) $ 1,574.22 2.02%
cardano
Cardano (ADA) $ 1.17 5.95%
binance-coin
Binance Coin (BNB) $ 239.24 3.37%
tether
Tether (USDT) $ 1.00 0.11%
polkadot
Polkadot (DOT) $ 36.36 4.30%
xrp
XRP (XRP) $ 0.459509 0.66%
litecoin
Litecoin (LTC) $ 187.10 2.44%
chainlink
Chainlink (LINK) $ 29.34 4.27%
bitcoin-cash
Bitcoin Cash (BCH) $ 520.34 2.85%
Newsletter

Join our newsletter!

Enter your email to receive our newsletter.

Don't worry, we don't spam