Big news for the cryptoasset industry today as the US Commodity and Futures Trading Commission (CFTC) has charged the owners of BitMEX – one of the world’s largest Bitcoin derivatives exchanges, with illegally operating a cryptocurrency derivatives trading platform and anti-money laundering violations.
According to the official release released on October 1st, 2020, the CFTC “is charging five entities and three individuals that own and operate the BitMEX trading platform.” These individuals include the company owners, namely, Arthur Hayes, Ben Delo, and Samuel Reed, who “operate BitMEX’s platform through a maze of corporate entities.” With CTO Sam Reed apparently already being taken into police custody.
Speaking on the matter was the chairman of the CFTC, Heath P. Tarbert, who said “we have made clear registration requirements a cornerstone of the regulatory framework that protects Americans and U.S. financial markets.”
The US Attorney for the District of New York indicted Reed, Delo, and Hayes, alongside Gregory Dwyer, on federal charges of violating the Bank Secrecy Act, as well as conspiracy to violate the Bank Secrecy Act.
It’s also worth noting that data from Coinmetrics shows that there’s around $2 billion worth of BTC currently sitting in BitMEX, with the $400 million insurance fund’s security also being called into question in light of the significant news.