Connect with us
Active Currencies 13943
Market Cap $2,394,938,802,969.90
Bitcoin Share 51.63%
24h Market Cap Change $0.44

CFTC charges Bitmex co-founders for violating Bank Secrecy Act

2min Read

Share this article

Update 2: In a reaction to the CFTC levying charges against BitMEX, the latter released an official statement that read:

“We strongly disagree with the U.S. government’s heavy-handed decision to bring these charges, and intend to defend the allegations vigorously. From our early days as a start-up, we have always sought to comply with applicable U.S. laws, as those laws were understood at the time and based on available guidance.”

The blog also stated that BitMEX platform was “operating entirely as normal and all funds are safe”. It also added that: “To allay any potential customer concerns, pending withdrawal requests were processed at 17:45 UTC, in line with our standard procedures. We will process another off-cycle withdrawal at 08:00 UTC, 02 Oct 2020, and then 13:00 UTC, as usual.”

Update 1: After the news of the CFTC levying charges against Bitmex broke out, co-founder and CTO of Casa Jameson Lopp tweeted this:

U.S Commodity Futures Trading Commission (CFTC) filed a civil enforcement action against crypto exchange BitMEX’s co-founders Arthur Hayes, Ben Delo, and Samuel Reed and accused them of operating an “unregistered trading platform” and for violating CFTC regulations which includes breaking the anti-money laundering rules, according to a 40-page complaint published by the CFTC today. 

According to the CFTC, the charges levied on BitMEX were a result of the firm allegedly operating without having CFTC approval to function as a designated contract market or swap execution facility, a futures commission merchant. 

Chairman of the CFTC, Heath P. Tarbert, stated:

For the United States to be a global leader in this space, it is imperative that we root out illegal activity like that alleged in this case. New and innovative financial products can flourish only if there is market integrity. We can’t allow bad actors that break the law to gain an advantage over exchanges that are doing the right thing by complying with our rules.

The complaint further charged BitMEX with violating CFTC rules by “failing to implement know-your-customer procedures,” and a customer information program, and anti-money laundering procedures. 

The complaint also mentioned BitMEX’s parent company, HDR Global Trading Limited, and other firms such as 100x Holdings Limited, ABS Global Trading Limited, Shine Effort Inc Limited and HDR Global Services (Bermuda) Limited as defendants.

According to the complaint: 

BitMEX has profited while illegally offering leveraged retail commodity transactions, futures, options and swaps; operating as an unregistered futures commission merchant (“FCM”); and operating a facility for the trading of swaps without being registered as a swap execution facility (“SEF”) or as a designated contract market (“DCM”). Therefore, the CFTC brings this action against Defendants, the owners and operators of the BitMEX virtual currency derivatives trading  platform..


Alisha is a full-time journalist at AMBCrypto. Her interests lie in blockchain technology, crypto-crimes, and market developments in Africa and the United States
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.