BitMEX Sued on 7 Charges, Including Racketeering and Fraud

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  • BitMEX has been sued on charges of wire fraud, market manipulation and more
  • The same plaintiff is behind one of the ongoing securities cases against Ripple
  • BitMEX already being sued by former seed investors

BitMEX has been sued on charges of racketeering, wire fraud, and market manipulation among others by the same legal team behind a recent lawsuit against Ripple. The complaint, brought by Bitcoin Manipulation Abatement, LLC (BMA), alleges that BitMEX and various individuals behind the scenes, including CEO Arthur Hayes, acted in a “brazenly lawless manner” in their operation of the futures exchange and accuses them of servicing US customers without the proper licenses.

Seven Charges Against BitMEX

The complaint has been brought by the same mysterious law firm that sued Ripple earlier in the month on the basis of selling securities and also tried it on with FTX exchange last year, although that alleged price manipulation case was thrown out by the judge. BMA has gone even further this time, accusing BitMEX of a whole host of irregularities in the way it operates the platform, including:

  • Racketeering
  • Wire fraud
  • Money laundering
  • Engaging in monetary transactions in property derived from specified unlawful activity
  • Conducting, controlling, managing, supervising, directing, or owning all or part of an unlicensed money transmitting business
  • Interstate transportation of stolen property
  • Cryptocurrency market manipulation

This incredible litany of charges was all part of the defendants’ masterplan, which was, according to BMA, to “financially benefit from the alleged racketeering activity and other unlawful conduct, earning Defendants billions of dollars in illicit profits.” The suit also alleges that the company knowingly offers services to US citizens despite saying that it doesn’t, claiming that some $138 billion worth of trading volume conducted by US residents.

BitMEX’s Days Numbered?

BitMEX is already being sued by former seed investors, who claim that Hayes stiffed them out of $300 million they claim they were due to them following the platform’s early success. Earlier this year the UK’s financial regulator warned UK traders not be “especially wary” of the BitMEX platform due to its lack of regulation and the chance of losing money. This latest case, which on its own proves nothing about BitMEX’s actions, nevertheless adds weight to the feeling that its days as a leader in the Bitcoin futures space might be coming to an end.