BitMEX Co-Founders Arthur Hayes, Ben Delo, and Samuel Reed, alongside parent company HDR Global Trading Limited, are facing a lawsuit in the US. The three allegedly stole $440,308,400 from the parent HDR accounts.
Pavel Pogodin of Consensus Law invoked the court filing. Pogodin is representing plaintiffs BMA LLC, Yaroslav Kolchin, and Vitaly Dubinin. Currently, a court order is being asked to attach the assets of the BitMEX crypto exchange.
As per the allegation, defendants took funds from HDR’s accounts while they knew of other ongoing investigations. The US Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ) also filed complaints prior.
Pavel Pogodin believes that,
BitMEX looted HDR assets to hinder the Plaintiffs’ and the Government’s recovery of funds for any future judgments.
The aforesaid profit distributions at a rate of $440,308,400.00 in just three months were not performed in the ordinary course of business of the defendant. These represent a $1,761,233,600 annual profit distribution rate. However, HDR simply does not earn such rates.
Other Allegations Against BitMEX Exchange
CFTC is also accusing BitMEX of operating an unregistered trading platform. Furthermore, BitMEX is violating multiple CFTC regulations. The exchange is failing to implement required anti-money laundering (AML) procedures.
In addition, the DOJ has also announced a lawsuit against BitMex officials. Hayes, Delo, Reed are being charged for violating the Bank Secrecy Act and conspiring to violate the Bank Secrecy Act.
However, BitMEX is refusing the allegations by litigation team Consensus Law. HDR Global Trading Limited representative noted that:
We will deal with this through the normal litigation process and remain entirely confident the courts will see claims for what they are.