Victor Ugochukwu · Dec 14, 2020 . 5min read
Lawsuit alleges BitMEX officials stole more than $440M
BitMEX is in trouble as a lawsuit claims that its officials stole above $440 million after learning about the charges from U.S. regulators.
By Komal Joshi · Nov 2, 2020 . 5min read
The problems of BitMEX seems to be increasing every day. A new lawsuit has been filed against BitMEX officials for stealing about $440 million. Plaintiffs BMA LLC, Yaroslav Kolchin, and Vitaly Dubinin allege that the leadership of HDR Global, the parent company of crypto derivatives exchange BitMEX withdrew vital sums of money once they discovered about investigations and imminent charges from U.S. regulators and law enforcement authorities.
BitMEX officials in an attempt to escape from U.S. regulators?
The lawsuit claims that the BitMEX officials were completely aware of the Commodity Futures Trading Commission (CFTC) and Department of Justice (DOJ) investigations. The lawsuit claims that they knew about the imminently pending civil and criminal charges. Thus, while planning to escape from the U.S. authorities, Defendants Hayes, Delo, and Reed stole about $440,308,400 of proceeds of several illicit activities that took place on the BitMEX platform from Defendant HDR accounts.
Moreover, the lawsuit states that the alleged looting happened to decrease the number of assets that could be captured by authorities upon implying the charges. An attached exhibit did not stipulate how they stole the funds. However, it claims that the executives started redirecting BitMEX’s profits after becoming conscious of possible charges in 2019.
The allegations are a part of the Oct. 30 court filing. For the uninformed, on Oct. 1, the U.S. Commodities Futures Trading Commission (CFTC) and the Department of Justice both announced charges against BitMEX. Arthur Hayes, Benjamin Delo, and Samuel Reed were indicted in New York. The federal prosecutors allege that the digital-asset exchange served American consumers while spurning U.S. banking laws.
Recently, the CEO of Bitcoin derivatives exchange BitMEX, and some of its leadership team quit from their positions. Moreover, this move was a result of the accusations from U.S. regulators that it was operating illegally. CEO Arthur Hayes and CTO Samuel Reed, have left executive management responsibilities. Nevertheless, BitMEX recently has announced hiring Malcolm Wright as its new compliance czar. Malcolm Wright, an extremely experienced Compliance guru, works with various global communities.
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