• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Buy SilverTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Buy SilverTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news Bitcoin

U.S. Court Files Lawsuit Against BitMEX Crypto Derivatives Exchange

Yashu Gola by Yashu Gola
10 months ago
in Bitcoin
Reading Time: 3min read
U.S. Court Files Lawsuit Against BitMEX Crypto Derivatives Exchange

U.S. Court Files Lawsuit Against BitMEX Crypto Derivatives Exchange

Advertisement
  • A U.S. District Court has filed a lawsuit against controversial crypto derivatives exchange BitMEX.
  • The plaintiff, BMA LLC, has accused BitMEX’s parent arm and operators of engaging in wire frauds, money laundering, and other illicit activities.
  • The BitMEX team has posted no statements on the latest scandal.

BitMEX has landed in yet another legal tussle.

The U.S. District Court for the Northern District of Calfornia on Saturday accepted a lawsuit against entities and individuals associated with the Seychelles crypto exchange. They include its parent company, HDR Global Trading Limited, and co-founders Arthur Hayes, Ben Delo, and Samuel Reed.

Hayes and Reed also serve as BitMEX’s chief executive and chief technical officers, respectively.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Allegations on BitMEX

The plaintiff is a little known BMA LLC that has accused BitMEX and its operators of facilitating “a myriad of illegal activities,” including fraudulent business dealings, wire frauds, money laundering, illegal fundraisings, market manipulation, and whatnot.

The lawsuit also alleged that BitMEX illegally offered its high-risk trading services to U.S. citizens. It read that the exchange reported almost 15 percent of its trading volume from the U.S. regions in 2019. That amounts to about $138 billion worth of trades that BitMEX conducted without obtaining a money transmitting license in the U.S.

“Therefore, according to Defendants’ own data, Defendants’ unlicensed money transmitting  business admittedly processed, on average, $3 billion of illegal and unlicensed money transfers each day,” the filing read.

Overleveraged Trades, Insider Trading

BMA’s lawsuit further dwelled into the BitMEX high-leverage trading facilities that allow traders to place bets up to 100 times that their original capital. The plaintiff wrote that the exchange uses “BXBT index price for highly liquid derivatives” that takes prices from “two or three illiquid spot exchanges.”

The “fraudulent” system enables manipulators and money launderers to skip detection. They get to open unlimited “check-free trading accounts” without any withdrawal and deposit limits. The unrestricted access allows the BitMEX system to cause “overloads,” wherein it accepts some orders and reject others during broader market moves.

“[It] causes the most liquidations all make BitMEX an exquisite “designer” tool for unsavory actors to manipulate cryptocurrency markets,” alleged BMA.

The accusation served as a reminder to BitMEX’s admittance of insider trading back in April 2018. It noted that all the defendants had agreed that the exchange operates its for-profit trading desk via its employee Nick Andrianov. The counter tracks customers’ existing trading positions, stop-loss orders, liquidation prices, and open orders.

The strategy gives BitMEX an unfair trading advantage over small retail traders, often leading to massive losses.

BitMEX has lost half of its market share in the past six months. A massive crypto withdrawal ensued after a “technical issue” on the exchange crashed the bitcoin price by more than 50 percent overnight.

bitmex, btcusd, btcusdt, crypto, cryptocurrency, xbtusd
BTCUSD plunged massively on March 12 after BitMEX broke | Source: TradingView.com

The exchange is also facing its early investors in a separate $540 million lawsuit. The plaintiffs in the case have accused the exchange and CEO Hayes of tricking them into offering stakes in the company.

The news was first reported by ForkLog.

NewsBTC has reached BitMEX for comments and is awaiting a response. 

Photo by Tingey Injury Law Firm on Unsplash
Tags: BitMEXbtcusdBTCUSDTcryptocryptocurrencyxbtusd
TweetShare29
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Related Posts

bitcoin and Ethereum macro beating

Economist: Ethereum and Bitcoin Look “Bullish” After Withstanding “Macro Beating”

47 mins ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Bearish Correction Pauses: Focus Remains on Dollar and Yields

13 hours ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Affect? Billionaire Fund Manager Sells 1.8M Tesla Shares for Clients

2 days ago
Bitcoin on Back Foot as Focus Turns to Powell Speech; What to Expect?

Bitcoin on Back Foot as Focus Turns to Powell Speech; What to Expect?

2 days ago
bitcoin gold ethereum mark cuban peter schiff

Mark Cuban Slams Peter Schiff: Gold is Dead, Bitcoin and Ethereum Are Today

2 days ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Price Outlook: Executive Sees BTC/USD At $60,000

3 days ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

EcoCelium is Now Live – Ready to Mark the Next Step in DeFi

March 5, 2021

MXC Exchange Commits to Integrating USDC-SPL on Solana

March 5, 2021

Gambling Exhibition Ukrainian Gaming Week 2021: A Range of Products From Exhibiting Companies, an up-to-Date Program and a Special Offer

March 5, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Buy Silver

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.