BitMEX’s Founders Face Another Lawsuit for Market Manipulation and Money Laundering

Founders of BitMEX face another lawsuit for engaging in the manipulation of markets, money laundering, and racketeering. This time the lawsuit is filed by Păun Gabriel-Razvan who is a resident of Bucuresti, Romania.

Defendants Made Billions Illegal

On Friday, Păun Gabriel-Razvan requested to launch a lawsuit in the North District Court based in California. According to the lawsuit, Arthur Hayes, Samuel Reed, and Ben Delo have made billions of dollars in illegal and racketeering actions as they have been deliberatively involved in the process. All three mentioned personalities, Ben Delo, Arthur Hayes, and Samuel Reed, are the founders of the cryptocurrency derivatives exchange BitMEX which is run by HDR Global Trading Limited.

Last month, plaintiff Dmitry Dolgov filed a similar lawsuit against the founders of BitMEX. Pavel Pogodin of Consensus Law is the attorney who is counseling both Gabriel-Razvan and Dolgov. The spokesperson of the crypto exchange has criticized Pogodin for his strict attitude towards BitMEX. “Mr. Pogodin operates just like a patent troll, filing ‘copy and paste’ complaints against us based on rehashed information culled from the internet,” said the spokesperson of the exchange.

Per the data written in the lawsuit file, the defendants have deliberately ignored the anti-money laundering (AML) and know your customer (KYC) policies. Due to many loopholes and flaws in the exchange’s process, many illegal actors such as “hackers, tax evaders, money launderers, smugglers, drug dealers all flocked to BitMEX flooding the platform with hot money.”

It is also mentioned the exchange has benefitted a lot from money laundering and manipulation of market via “its internal trading desk.”

Plaintiff also demands the money that he spent on suit and hiring of attorney and he also suffered from the loss of property.

Before two suits on an individual level, the exchange faced two lawsuits on the part of the US government. Commodities Futures Trading Commission and the Department of Justice accused the founders for violation of Bank Secrecy Act, AML and KYC policies, and running of an unregistered platform.