The U.S. Commodities and Futures Commission (CFTC), together with the Federal Bureau of Investigation (FBI), has charged BitMEX with a failure to prevent money laundering, also running an illicit derivatives trading platform.
The two charges carry a maximum penalty of five years in prison for the accused.
Connecting with the charges, the United States Office of the Southern District of New York has arraigned four individuals: Arthur Hayes, Ben Delo, Samuel Reed, and Gregory Dwyer.
Yesterday, the authorities arrested BitMEX CTO, Samuel Redd, in Massachusetts. While the others still “remain at large.”
On the other hand, U.S. authorities believe that both Hayes and Delo are in Hong Kong, while Dwyer might be in Australia or Bermuda.
Talking about the case, FBI Assistant Director William F. Sweeney Jr. gave a contemptuous account of what investigators turned up.
Sweeney Jr. noted that the accused have willfully violated the Bank Secrecy Act and then evaded the U.S. anti-money laundering requirements. Additionally, he said that one of the accused is bragging about bribing regulators in Seychelles, wherein BitMEX is incorporated, for the cost of “a coconut.”
BitMEX’s Response to the Allegations
As a response, BitMEX has released a statement refuting the charges. They are claiming that the alleged violation of the law was the effect of a lack of clarity on the regulators’ part.
Nevertheless, BitMEX is still open for trading. The firm is also seeking to guarantee the users by saying that the deposits are safe.
On the other hand, BitMEX users are seen clamoring to withdraw their funds. As far as now, outflows from the exchange are nearing to 25k per Bitcoin.
J.P. Morgan Market Manipulated the Results of Fines for the Bank
On the charges of manipulating the precious metals markets, J.P. Morgan agreed to pay $920M to settle with U.S. Regulators.
The firm has admitted “spoofing” in 2009 and 2016 to impact the market in their favor.
Instead of the systemic corruption, Daniel Pinto, the bank’s COO, has put down to the individual traders’ actions, who have moved on since.
Though, as it was pointed out by @TheCryptoLark, the crimes of J.P. Morgan didn’t result in prison time for the CEO Jamie Dimon; he believed that this is an example of bias towards the bigger banks.
The J.P. Morgan spoofing cases come off from last month’s U.S. government leak, where the firm was also alleged of money laundering.
According to some reports, a consortium of big banks has washed $2T of dirty money from the proceeds of drugs, terrorism, and corruption. It then continued to happen even when being warned by U.S. officials.
The banks that are involved are Bank of New York Mellon, Deutsche Bank, HSBC, J.P. Morgan, and Standard Chartered.
Recently, Bitcoin’s price has closed down to 2% on the news of the BitMEX charges. Now, it sees a continuation of the downtrend; currently, the price of BTC is $10,661.