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

*BREAKING – BitMEX Charged by CFTC for Operating Illegal Crypto Derivatives Exchange

Carlos Park by Carlos Park
1st October 2020
3 min read
14
*BREAKING – BitMEX Charged by CFTC for Operating Illegal Crypto Derivatives Exchange
0
SHARES
0
VIEWS
FacebookTwitterLinkedinTelegramEmailWhatsapp

The crypto world awoke today to find BitMEX, the popular trading platform, facing charges by the CFTC. In a Press Release from the Commodities and Futures Trading Commission, the U.S. District Court for the Southern District of New York is charging five corporate entities and three individuals who own and run the site.

Of those under investigation are Benjamin Delo, Samuel Reed, and Arthur Hayes, who started the exchange in 2014. Arthur is perhaps the most outspoken of the owners, fond of highlighting specific cryptos on his Twitter feed.

The case has been under development for some time. The CFTC alleges that since 2014 BitMEX “illegally offered leveraged retail commodity transactions, futures, options, and swaps on cryptocurrencies including bitcoin, ether, and litecoin, allowing traders to use leverage of up to 100 to 1 when entering into transactions on its platform.” The complaint alleges that the exchange owners conspired to violated the Bank Secrecy Act by failing to implement the most basic compliance procedures including Know Your Customer (KYC) practices and Anti-Money Laundering measures. This crime carries a maximum potential sentence of 5 years in federal prison.

No details have been released on arrests or other legal actions to be taken against the exchange. Documents from the US. Attorney for the District of New York were unsealed implicating Hayes, and other owners of violating the Bank Secrecy Act. BitMEX is headquartered in the Republic of Seychelles with offices operating outside of the country.

“They will soon learn the price of their alleged crimes will not be paid with tropical fruit, but rather could result in fines, restitution, and federal prison time,” FBI Assistant Director William F. Sweeney Jr. said in a statement.

While it primarily operates out of Hong Kong, the official indictment states BitMEX had offices on US soil, putting them at least in part under US jurisdiction. It is unknown if the US will seek to seize or freeze a portion of BitMEX’s holdings, but either of those decisions could jeopardize the roughly $2 billion in Bitcoin (~1% of global supply) held on the site.

Reports have surfaced that the founders boasted about the ability to bribe Seychelles officials “with just a coconut,” compared to the higher cost of bribery in other countries. Co-founder Samuel Reed was arrested in Massachusettes this morning, with the other two co-founders unaccounted for.

There has been no comment from any BitMEX representative. The company is no stranger to scrutiny from the authorities. In May of 2020 it had similar accusations of racketeering and offering high-risk services to users in the US. In April of 2020 it began to require KYC from its users.

This crackdown arrives on the heels of other crypto legislation from California. AB1864 provides the state of California with more power to regulate exchanges and protect consumers from scams.

Tags: news
ShareTweetShareShareSendSend
Carlos Park

Carlos Park

Carlos has been actively involved in cryptocurrencies since 2014 and since then has authored multiple articles and reviews, edited podcasts, and acted as an advisor for several projects related to blockchain technologies.

Related Posts

Crypto Expert Advises Investors to Scoop up Altcoins as BTC Rally Stalls
All News

Crypto Expert Advises Investors to Scoop up Altcoins as BTC Rally Stalls

22nd January 2021
30 in Japan Face Charges After Trading Stolen Crypto from Coincheck
All News

30 in Japan Face Charges After Trading Stolen Crypto from Coincheck

22nd January 2021
VanEck Files for Digital Asset ETF that will Favour Investors
All News

VanEck Files for Digital Asset ETF that will Favour Investors

22nd January 2021
Yellen-Crypto
All News

Joe Biden’s Treasury Secretary nominee says Crypto can empower Financial Systems days after she criticized the tech

22nd January 2021
Ripple and Binance Transact 51.4 Million XRP Worth About $13M
All News

Ripple and Binance Transact 51.4 Million XRP Worth About $13M

22nd January 2021
Bitcoin-Chamath Palihapitiya
All News

Bitcoin Briefly Breaks Below $30,000 But Rebounds on Microstrategy Dip Buy

22nd January 2021
Next Post
BTC Price Prints Monthly Close Above the Crucial $10.5K Support

BTC Price Prints Monthly Close Above the Crucial $10.5K Support

Court Rules in Favour of SEC in Lawsuit Against the 2017 Kik ICO

Court Rules in Favour of SEC in Lawsuit Against the 2017 Kik ICO

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

Crypto Expert Advises Investors to Scoop up Altcoins as BTC Rally Stalls

30 in Japan Face Charges After Trading Stolen Crypto from Coincheck

VanEck Files for Digital Asset ETF that will Favour Investors

Joe Biden’s Treasury Secretary nominee says Crypto can empower Financial Systems days after she criticized the tech

Ripple and Binance Transact 51.4 Million XRP Worth About $13M

Join our newsletter!

Enter your email to receive our newsletter.


Don’t worry, we don’t spam
ADVERTISEMENT

Popular Posts

  • Prime Minister-Bitcoin-Canada

    Ex Canadian Prime Ministers says Bitcoin could be a Reserve Currency

    0 shares
    Share 0 Tweet 0
  • Reports – Iranian police seize 45,000 illegal Bitcoin miners

    0 shares
    Share 0 Tweet 0
  • SEC lists 28 Suspicious Crypto Companies in its Watch List – Are your funds safe?

    0 shares
    Share 0 Tweet 0
  • Ether Primed To Give Bitcoin a Run For Its Market Dominance

    0 shares
    Share 0 Tweet 0
  • Grayscale Investments might soon launch new Crypto products and Chainlink is on the list

    0 shares
    Share 0 Tweet 0

Market Updates

Crypto Expert Advises Investors to Scoop up Altcoins as BTC Rally Stalls

Crypto Expert Advises Investors to Scoop up Altcoins as BTC Rally Stalls

22nd January 2021
Ether Primed To Give Bitcoin a Run For Its Market Dominance

Ether Primed To Give Bitcoin a Run For Its Market Dominance

21st January 2021
ETH Surpasses Its 2018 Price Record to Set New ATH at $1,439

ETH Surpasses Its 2018 Price Record to Set New ATH at $1,439

19th January 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

  • Crypto Expert Advises Investors to Scoop up Altcoins as BTC Rally Stalls
  • 30 in Japan Face Charges After Trading Stolen Crypto from Coincheck
  • VanEck Files for Digital Asset ETF that will Favour Investors
  • Joe Biden’s Treasury Secretary nominee says Crypto can empower Financial Systems days after she criticized the tech

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) $ 32,875.00 3.17%
ethereum
Ethereum (ETH) $ 1,255.82 6.79%
tether
Tether (USDT) $ 1.00 0.40%
polkadot
Polkadot (DOT) $ 18.11 9.70%
ripple
XRP (XRP) $ 0.278128 2.45%
cardano
Cardano (ADA) $ 0.355982 8.75%
chainlink
Chainlink (LINK) $ 23.94 20.54%
litecoin
Litecoin (LTC) $ 140.28 2.20%
bitcoin-cash
Bitcoin Cash (BCH) $ 437.04 3.12%
binancecoin
Binance Coin (BNB) $ 41.33 3.42%
Newsletter

Join our newsletter!

Enter your email to receive our newsletter.

Don't worry, we don't spam