BitMEX Owners Charged By CFTC For Illegally Operating Cryptocurrency Exchange

A piece of big news in the cryptocurrency industry as the United States Commodity Futures Trading Commission (CFTC) has charged the owners and operators of the Seychelles-based cryptocurrency exchange BitMEX. According to the US agency, they were illegally operating a cryptocurrency exchange and violated various regulations.

CFTC has filed a civil enforcement action against them in the U.S. District Court for the Southern District of New York saying that the owners of BitMEX trading exchange were running an “unregistered trading platform and violating multiple CFTC regulations, including failing to implement required anti-money laundering procedures.”

As per the press release issued by the Commodity Futures Trading Commission on Thursday, October 1, 2020, the Division of Enforcement’s Digital Asset and Bank Secrecy Act Task Forces were involved in bringing the case on the front.

The Chief Executive Officer (CEO) of the exchange Arthur Hayes, Samuel Reed, and Ben Delo are one of those who have been charged with operating an illegal trading platform by CFTC. These three are the co-founders of the BitMEX exchange.

James McDonald, the Division of Enforcement Director, said, “CFTC has made clear, registration requirements are a cornerstone of the regulatory framework that protects Americans and U.S. financial markets.”

“Effective anti-money laundering procedures are among the fundamental requirements of intermediaries in the derivatives markets, whether in traditional products or in the growing digital asset market. This action shows the CFTC will continue to work vigilantly to protect the integrity of these markets.”

Chairman Heath P. Tarbert believes that it is very necessary for us to remove the illegal activity from the cryptocurrency industry for the United States to become a leader in this sector. He said:

“For the United States to be a global leader in this space, it is imperative that we root out illegal activity like that alleged in this case. New and innovative financial products can flourish only if there is market integrity. We can’t allow bad actors that break the law to gain an advantage over exchanges that are doing the right thing by complying with our rules.”

A spokesperson from the BitMEX exchange has said in a statement that they do not agree with these charges brought by the CFTC against them. And they plan to fight against these charges.

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