$ 440 million in “stolen” bitcoins? US authorities raise the tone against BitMEX

BitMEX is out of order - The BitMEX platform continues its descent into hell. After two lawsuits filed by the United States, the removal of its CEO, and the temporary arrest of its CTO, the platform is once again being sued. 

The BitMEX case gets more complicated

Since the beginning of October, the BitMEX exchange platform has been the subject of various legal proceedings. For example, on 1 October, the CFTC filed a complaint against BitMEX, accusing it of operating on an unregistered platform, as well as of failing to put in place adequate KYC and anti-money laundering procedures.

Subsequently, a second complaint was filed by the US Department of Justice. This complaint resulted in the arrest of Samuel Reed, CTO of BitMEX, who was eventually released on $5 million bail.

Of course, these lawsuits resulted in reactions from BitMEX. Indeed, the exchange decided to implement a KYC procedure that had not been in place until now. Unfortunately, it would appear that this is not enough.

The debacle continues

However, the worries seem to be just beginning for BitMEX. Indeed, a new complaint filed in May 2020 was just made public on October 30.

This new complaint accuses HDR Global, the parent company of BitMEX, of having withdrawn large sums of money as soon as it learned of the existence of judicial investigations against it.

BitMEX executives are once again being accused of allegedly embezzling some $440 million.

"While preparing to face the US authorities, the defendants Hayes, Deloand and Reed looted approximately $440,308,400 from various malicious activities that took place on the BitMEX platform via HDR's accounts. "The publication.

According to the complaint, the aim would have been to plunder all the funds in order to make them unavailable for future collection by the authorities in the context of a potential conviction.

"More specifically, the profit distributions of $440,308,400.00 in only three months were clearly not made in the normal course of HDR's business, as they represent an annual profit distribution rate of $1,761,233,600.00, money which the Defendant HDR simply does not earn. Accordingly, these extraordinarily large distributions were clearly designed to plunder HDR's assets and to prevent plaintiffs and the government from recovering any compensation that may result from a future judgment. "The Complaint.

It would appear that BitMEX's future is gradually being jeopardised in light of the numerous lawsuits targeting the platform and its executives. Attacked both by the authorities and by aggressive competitors, what will its future look like?

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