Home » BitMEX engaged in Market Manipulation and Unregistered Trading

BitMEX engaged in Market Manipulation and Unregistered Trading

by Hans Lipper

BitMEX has been struck this time with a lawsuit that alleges that it has involved itself in malicious market manipulation and unregistered trading.

As per the complaint filed, it also came into being that BitMEX executives have routed $440 million away so that they could avoid confiscation. Yaroslav Kolchin and Vitaly Dubinin were the traders who filed the complaint. 

The civil lawsuit is a cause of concern

A civil lawsuit filed on Oct 30 deposes BitMEX executives to be engaged in market manipulation and unregistered trading. It also claims that BitMEX’s founders were involved in moving approximately $440 million out of BitMEX despite knowing that it could lead to an offensive charge towards them. Two traders by the name Yaroslav Kolchin and Vitaly Dubinin filed a complaint against the founders of its parent company HDR Global Trading Limited. The accusations went so far that its co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed were referred to as notorious fraudsters. The lawsuit has also utilized the arraignments by the Department of Justice and the U.S. Commodity Futures Trading Commission (CFTC) as exhibits.

Source: Fund distribution pattern: Case No. 3:20-cv-3345-WHO

What’s more, is that the executives somehow caught hold of the imminent charges in 2019 and immediately looked to move funds so that the amount of seizure could be reduced. Later it was said that the funds were divided among the three co-founders and  Sean O’Sullivan Ventures.

Not the first time

Not long before, BitMEX’s first case was in May with the accusation of extreme money laundering activities, wire fraud, and a conspiracy. The suit also included the prevalence of inflamed and intense price fluctuations along with maximum liquidations. Once the announcement of the accusation came into the public eye, Arthur Hayes renounced his position as CEO. 

The latest news also is a battering circumstance for BitMEX. Users did not take the news too well and many of them evacuated it. When the accusations rolled out in public, investors withdrew more than 37,000 BTC, and the open interest dropped by 16% as per Arcane Research. 

SEC’s tough stand for crypto regulations

The Securities and Exchange Board has always been extremely vigilant over crypto dealings. The SEC has always maintained its stance of a strict regulator when it comes to cryptocurrency. Its commissioner Hester Peirce, a supporter of digital currency has implied that the arrests equate to the heating regulatory scene. He also mentioned that the SEC has taken upon itself to watch over any unregistered securities through ICOs as well as celebrity promotions. 


The information discussed by The Coin Magazine is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Do your due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright The Coin Magazine All rights reserved.

Popular News

Leave a Comment

Ads Blocker Image Powered by Code Help Pro

Please support us to continue to provide free news for everyone

We have detected that you are using extensions to block ads. Please support us by disabling these ads blocker.

Powered By
Best Wordpress Adblock Detecting Plugin | CHP Adblock