Yesterday, the 1st of October, the US Commodity and Futures Trading Commission (CFTC) charged the owners of BitMEX for illegally operating a cryptocurrency derivatives trading platform and violating anti-money laundering policies. Among those charged included BitMEX owners Arthur Hayes, Ben Delo, and Samuel Reed.
The Chairman of the Commission, Heath P. Garnett emphasized that the CFTC “has made clear, registration requirements are a cornerstone of the regulatory framework that protects Americans and U.S. financial markets.”
The US Attorney for the District of New York also indicted the owners of BitMEX with Gregory Dwyer. The indictment was on federal charges of violating the Bank Secrecy Act and conspiracy to violate the Bank Secrecy Act.
The complaint alleges that BitMEX has illegally offered leveraged retail commodity transactions, futures, options, and crypto swaps since November 2014. According to the complaint, BitMEX has facilitated cryptocurrency derivatives transactions to trillions of dollars with fee revenue of more than $1 billion since 2014. The complaint also charges BitMEX with operating a facility that trades and processes swaps without approval from the CFTC. In addition, they charged BitMEX with failing to comply with know-your-customer (KYC) procedures and anti-money laundering (AML) policies.
BitMEX Counters CFTC Allegations
In response to the charges, BitMEX released an official statement disagreeing with the government’s decision. The exchange said that the decision was severe and thru will defend themselves. According to the statement, they added that they “have always sought to comply with the applicable U.S. laws, as those laws were understood at the time and based on available guidance.”
For worried customers, the derivative exchange assured that they continue to operate as normal. In addition, they guaranteed the safety of user funds.
BitMEX is one of the world’s largest Bitcoin derivatives exchange founded in 2014 by Arthur Hayes. The crypto exchange is owned and operated by HDR Global Trading Limited. In addition, HDR Global is registered in Seychelles and has offices worldwide.