Now three co-founders of BitMEX are under the final phase of the court hearing in the CFTC civil case.
BitMEX is a cryptocurrency exchange and derivative trading platform. Exchange is owned and operated by HDR Global Trading Limited, which is registered in Seychelles. In Q4 2020, US regulatory body Commodity Futures Trading Commission (CFTC) filed a lawsuit against the BitMEX exchange, for its violation of necessary laws in the US.
In August 2021, The legal case between BitMEX and CFTC agency was finalized to settle with a total of $100 million fine on the firm and also ban the exchange from offering derivatives trading in the US.
Now the CFTC agency asked for the $30 million from the three co-founders of BitMEX (Arthur Hayes, Benjamin Delo, and Samuel Reed) alongside the fine on exchange, under the court order approval. That means, the total value of the settlement reached around $130 million.
Criminal charges against BitMEX co-founders
Besides the civil lawsuit against the BitMEX exchange and its co-founders, a criminal charge is also active against the co-founders
The US Attorney’s Office for the Southern District of New York noted that these three co-founders also violated the Bank Secrecy Act.
These three co-founders filed for guilty pleas and Haye urged to allow him to travel to foreign countries before the hearing decision.
BitMEX violations of laws
When the CFTC agency filed a lawsuit against BitMEX then it was found that BitMEX exchange provided its crypto services without regulatory approval from the CFTC Agency.
And also, BitMEX was not working under full requirements as a responsible crypto exchange to prohibit money laundering activities.
At present, the exchange is trying to bring spot trading on its platform and also working to introduce its native token BMEX to provide a better trading experience for the users under less fees.