The trading platform for crypto derivatives is said to have not observed even “the most basic legal provisions”.
The American supervisory authority for derivatives trading (CFTC) has filed an injunction against the BitMEX crypto exchange, which specializes in the trading of crypto derivatives
The trading platform is accused of conducting its business illegally and of violating anti-money laundering regulations.
According to a corresponding announcement on Thursday, the CFTC has filed the relevant injunction in the District Court of South New York. Five companies and three individuals who are supposed to operate the platform are named as defendants.
The three defendants are Arthur Hayes, known in the public eye as the managing director of BitMEX, as well as Ben Delo and Samuel Reed. The CFTC accuses them of jointly operating the trading platform for crypto derivatives via an “opaque network of companies”.
The companies concerned, which should serve to possibly obscure BitMEX, are HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited and HDR Global Services Limited
The CFTC is demanding compensation for damages, repayment of all “illegal profits”, payment of fines and permanent trade bans for all defendants.
The supervisory authority is convinced that BitMEX is said to have offered illegal “leverage trading”, ie trading with financial leverage. Since its introduction in 2014, the value traded should be 1 trillion. US dollars amount. Despite the success of the trading platform, it did not even observe “the most basic legal provisions”. BitMEX has neither registered with the CFTC nor taken urgently required steps to combat money laundering and obtain information.