US authorities filed criminal proceedings Thursday against the owners of one of the world’s largest cryptocurrency exchanges, BitMEX, accusing them of allowing the Hong Kong-based company to launder money and engage in other illegal transactions
BitMEX is far from the first cryptocurrency company suspected of facilitating criminal activity, but it is the most important and established exchange to face criminal charges
Federal prosecutors in Manhattan indicted BitMEX chief executive Arthur Hayes and three co-owners: Benjamin Delo, Samuel Reed and Gregory Dwyer m Reed was arrested Thursday in Massachusetts, while the other three men were still in court. leak, authorities said
Prosecutors said BitMEX took some action to limit clients even after being told the exchange was being used by hackers to launder stolen money and by people in countries under sanctions, such as ‘Iran
« BitMEX has made itself available as a vehicle for money laundering and sanctions violations, » says indictment released Thursday
BitMEX has processed over $ 1.5 billion in transactions a day recently, making it one of the top five mostly BitMEX exchanges and Mr Hayes is known to push the boundaries of the unregulated industry of cryptocurrency
After its inception in 2014, BitMEX gained popularity by allowing traders to buy and sell contracts linked to the value of Bitcoin – called derivatives or futures – with few restrictions and rules in place in ‘other scholarships This allowed investors to take out huge loans and make risky transactions
The relaxed attitude has also made it easy for people around the world to transfer money in and out of BitMEX without the basic identity checks that can prevent money laundering In August, BitMEX implemented some of these verification checks
Mr. Hayes is originally from Buffalo and previously worked as a trader at Deutsche Bank and Citi after graduating from the University of Pennsylvania It incorporated BitMEX in Seychelles even though its offices were in Hong Kong and New York
Mr. Hayes chose the Seychelles « because it would cost less to bribe the Seychelles authorities – just ‘a coconut’ – than it would cost to bribe regulators in the United States and elsewhere, » according to the indictment
A spokesperson for HDR Global Trading Limited, one of the corporate entities controlling BitMEX, said: “We totally disagree with the US government’s brutal decision to bring these charges and intends to defend vigorously the allegations «
BitMEX reportedly under investigation by US authorities since last year On Thursday, US cryptocurrency experts said they were not surprised the exchange is under scrutiny meticulous considering his free attitude
« The vast majority of businesses that serve the US are compliant, so it’s no surprise the government is now turning to those who refuse to follow the law, » said Jerry Brito, executive director of Coin Center , a research and lobbying group in Washington
Bitcoin, Commodity Futures Trading Commission, cryptocurrency exchange
News from the world – UK – Owners of BitMEX, a leading Bitcoin exchange, face criminal charges
SOURCE: https://www.w24news.com
