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BitMEX accused of money laundering and market manipulation in a new lawsuit.

It seems the bad days of the derivatives exchange BitMEX have been far ahead to end, after founders being accused of operating an illegal business and misconduct on implementation KYC to their customers and more charges by the Commodity and Futures Trading Commission (CFTC) and the U.S Department of Justice (DoJ) now one more charges comes to them.

This time the derivatives exchanges have been accused of laundering money and market manipulation by a Russian customer.

Accordingly to the The Block Crypto the Russian customer is suing the derivatives exchange and their owners and will pursue in court for a payment of more that $50 millions in the exchanges penalties. In the lawsuit the customer of the exchange accuse the platform of engagement in fraudulent schemes that made him lose several money with the exchange earning a lot of cash for their activity on the schemes and the defendant is willing to prove those schemes in trial courts.

The exchange is facing serious problem with the previous accusations, and if proved that the BitMEX allowed criminal money to enter in their platform for not questioning how the money was issued firstly can give reason to the United States agencies, who claim in their hundred and fifty pages lawsuit against the cryptocurrency platform that not focusing in Know your Customer policy they allowed money from hackers, criminals, ransomware and other biggest criminals activities to feed the exchange.

This new lawsuit against the company also claim that BitMEX have been engaged in dubious schemes that put all the market and clint in danger and customers have been victimized by they role.

Can this start the end of the derivatives exchange?!

In the world of cryptos one thing that isn’t sure is what can happen next and to preview an immediate effect of the lawsuit against the firm is also unpredictable but some things just happened in the two week the founders and owners got criminally charged:

  • Huge funds have been withdrawn from BitMEX

  • The prominent channels of monitoring of transactions flagged the derivatives market as “high risk” platform.

Those two movement says a lot with customers taking out their from the platform could make it to somehow become unsustainable and entering to bankruptcy in long term period, and if it lose trust from the outside word with actual investors taking out funds could be dangerous to they maintenance on market, with many of former users looking for exchanges where can continue their business.

But the future also can prove contrary with the exchange resurrection and “coming from ashes” and strongly stay on business, the future will tell, but right now things aren’t pretty cool for the company.

And I believe that many other victims or supposed victims can come to the ground to claim also they have been losing money from the platform, as known when a company start facing problems many want to take a piece from them with legit and illegitimate claims, the few days or months are crucial to see what will happen to BitMEX a leader company on crypto derivatives.

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Take care.

Find also the article on my blog.

 

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