BitMEX cryptocurrency exchange is facing another lawsuit, according to which the exchange "deliberately designed" countless illegal actions, iHodl Russia has learned.
The lawsuit was filed by BMA LLC in the US District Court for the Northern District of California.
According to BMA LLC, BitMEX and its top executives, including Arthur Hayes, Ben Delo and Samuel Reed conduct their activities in "brazenly, lawless manner," and the scale of their atrocities is "truly staggering."
BMA claims BitMEX maintains close ties in the US, particularly in the Northern District of California. The plaintiffs cite several sources that reported that almost 15% of the BitMEX trading volume in 2019, or about $138 billion, fell to American traders.
Thus, the exchange daily provided them with money transfer services for an average of $3 billion, without a corresponding license.
Also, according to the lawsuit, BitMEX specifically freezes activity on its servers, passing off what is happening as a system overload, while it itself can choose which applications to skip or reject against the background of volatile cryptocurrency market movements in order to increase the volume of liquidations.
A spokesperson for HDR Global Trading Limited, the owner and operator of the BitMEX cryptocurrency derivatives trading platform, said it is aware of a complaint filed by BMA.
"Having reviewed a draft version of their complaint, which is clearly rehashed from information culled from the internet, we confirm we will be defending ourselves vigorously against this spurious claim. We will deal with this complaint through a normal litigation process and are entirely confident the court will see the claim for what it is," the spokesperson for HDR Global Trading Limited added.
Mentioned in the lawsuit the trading division of BitMEX is supposedly used to trade against customers based on insider information about their positions.
Earlier BitMEX announced it would restrict access for Japan residents due to the amendments to the Japan Financial Instruments and Exchange Act.
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