A lawsuit had been filed against HDR Global Trading – the parent company of BitMEX. Several allegations have been raised against HDR and its upper management. Ben Delo, Samuel Reed, and Arthur Hayes – co-founders of BitMEX had also been made parties to the lawsuit. Allegations include looting of over US$440 Million by HDR and its upper management.
BitMEX is one of the largest known cryptocurrency exchange firm of the world. Recently, a huge scam had taken place on the exchange as a result of which millions of dollars had been stolen. Many customers of the exchange filed cases for the return of their looted money. But rumors suggested that the scam was in fact “pre-planned” by none other than the exchange’s co-founders and parent company.
Based on these assumptions, two individuals namely Yaroslav Kolchin and Vitaly Du along with BMA LLC had lodged a civil suit. In the suit HDR Global, its higher officials, BitMEX, and its co-founders have all been made defendants.
It has been alleged in the suit that BitMEX had defrauded its customers by breaching their trust. The lawsuit stated that certain illegal activities had been committed from BitMEX’s platform to extort money from its customers. An allegation contained in the suit suggested that US$440 had been embezzled by the exchange and its accomplices i.e. other defendants.
The lawsuit got filed after BitMEX was first charged by the US regulator namely Commodities Future Trading Commission (CFTC). Later on, the exchange was again charged by the US Department of Justice (DOJ).
CFTC found that the exchange was involved in trading crypto products which fell under the definition of “securities”. As per US laws of securities, the trade products which are securities are required to be registered with the Regulator. However, the firm deliberately failed to register the product and started trading it in the US market.
CFTC lodged a claim against BitMEX which was heard by DOJ. During the course of hearing, DOJ found BitMEX guilty of the crime and imposed heavy penalty upon the exchange.
On the side of the plaintiffs, Consensus Law firm is representing the case.
In the meanwhile, BitMEX’s counsel has specified denied the allegations leveled against the exchange. He said that Pavel Pogodin who is the partner at Consensus Law has bias against BitMEX. He had filed a series of litigation against BitMEX and HDR, he suggested.