Russian accused BitMEX exchange of illicit enrichment worth billions of dollars
The crypto derivatives exchange BitMEX, which was sued by the US authorities earlier this month, has become a defendant in a new case, in which it is accused of money laundering and market manipulation. Writes about this The Block.
Moscow resident Dmitry Dolgov filed a lawsuit against BitMEX in the Northern District of California on Wednesday. He claims that the parent company of HDR Global Trading Limited, its founders Arthur Hayes, Ben Delo, Samuel Reid and others have received multi-billion dollar income from their criminal activities..
The 188-page lawsuit says the defendants neglected anti-money laundering and customer identification requirements and accepted unlimited amounts from anyone, “without asking a single question.” Because of this, its services were actively used by “hackers, tax evaders and money launderers, smugglers and drug dealers.”.
Dolgov also claims that BitMEX is “directly involved with and financially benefiting from market manipulation and money laundering through its internal trading division.” The same goes for indirect benefits..
“The defendants involved in money laundering opened two accounts on the stock exchanges. One was a subsidiary and was listed on the exchange that BitMEX uses in its index (Coinbase Pro, Kraken and BitStamp), the second is the beneficiary. He registered with BitMEX itself, – describes the alleged scheme of work of the defendants Dolgov. “The defendants then took large derivatives positions on BitMEX with leverage and immediately placed market orders through the slack sub account to move the index price in the direction they wanted.”.
Plaintiff claims to have suffered “substantial losses” due to BitMEX’s actions, which he leaves to the court to determine the amount.
“We intend to recover compensation, the amount of which is to be established in court, as well as $ 50,000,000 as fines,” said Pavel Pogodin from Consensus Law, representing Dolgov..