- BitMEX & Founders Face Another Lawsuit for Conducting Illegal Activities
- Lawyer claims BitMEX defrauded plaintiff 247.94 BTC ($4.3M)
- BitMEX faces more than four lawsuits in 2020
Another BitMEX lawsuit has been filed against the crypto exchange and its founders for market manipulation, racketeering, and money-laundering. Păun Gabriel-Razvan, a resident of Bucuresti, Romania, filed the said lawsuit.
This is at least the fourth lawsuit against BitMEX crypto exchange in 2020.
Razvan filed the lawsuit against HDR Global Trading Limited, the operator of BitMEX, the exchange’s founders Arthur Hayes, Ben Delo, and Samuel Reed, and others involved. In detail, he claims the accused had engaged in and facilitated racketeering activities, earning defendants billions of dollars in illicit profits.
Specifically, Razvan claims he was defrauded out of 247.94 bitcoin ($4.3M) at the time of writing. Therefore, under applicable law, the plaintiff is seeking to recover three times this amount plus interest, costs, and attorney fees. In addition, they are also seeking punitive damages of $50 million under California law, expressed Razvan’s lawyer.
BitMEX and Founders Lawsuit in Detail
In particular, the lawsuit claims that the defendants did not observe know your customer (KYC) or anti-money laundering (AML) requirements. As a result,
Hackers, tax evaders, money launderers, smugglers, drug dealers all flocked to BitMEX flooding the platform with hot money,
Furthermore, Razvan’s lawsuit also claims that:
BitMEX participates in and financially benefits from the market manipulation and money laundering through its internal trading desk and indirectly,
Atty. Pavel Pogodin of Consensus Law is representing Razvan. Nevertheless, more victims of BitMEX are coming forward, and they are preparing to file more lawsuits, said Pogodin. Also, Pogodin has previously filed similar complaints against crypto companies Ripple and FTX.
BitMEX said that it is prepared to fight in court and that it remains unfazed by the lawsuit.
“As we’ve said before, regrettably, Mr. Pogodin operates just like a patent troll, filing ‘copy and paste’ complaints against us based on rehashed information culled from the internet. We will deal with this through the normal litigation process and remain entirely confident the courts will see his claims for what they are.”
BitMex Faces More Than Four Lawsuits in 2020
Recently, BMA LLC, Yaroslav Kolchin, and Vitaly Dubinin accused BitMEX of stealing $440,308,400 from the parent HDR accounts. Additionally, plaintiff Dmitry Dolgov sued BitMEX for violating regulations and manipulating markets with legal claims amounting to $50 million.
CFTC is also accusing BitMEX of operating an unregistered trading platform. In addition, the DOJ has also announced a lawsuit against BitMex officials. The DOJ charges Hayes, Delo, and Reed for violating the Bank Secrecy Act.