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BitMEX co-founders accused of looting over $400,000

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TL;DR

  • BitMEX founders accused of siphoning funds
  • Firm denies any wrongdoing 

A civil lawsuit has been filed in the United States against the founders of BitMEX. According to the lawsuit, the founders were accused of siphoning over $400,000 from the account of the company.

The plaintiffs —BMA LLC, Yaroslav Kolchin and Vitaly Dubinin— are asking the law court to give an order that mandates the attachment of the crypto exchange firm, BitMEX.

According to the motion filed, the plaintiffs alleges that the three co-founders of the crypto firm, Arthur Hayes, Samuel Reed, and Ben Delo, withdrew funds from the HDR account after they have been notified that they are currently being investigated by the US Commodity Futures Trading Commission (CFTC) and Department of Justice (DOJ).

BitMEX had been taken to court  by agencies in the United States. The agencies accuse the crypto firm of breaking several regulatory rules. The violations include failure to implement KYC procedures, failure to adhere to anti-money laundering procedures and breaking regulatory laws guiding service offering to clients based in the United States.

The motion alleges that the money was being withdrawn because the founders were trying to avoid having the funds available against possible judgments against it. The agencies says the funds were not withdrawn towards the purpose of running the business.

BitMEX denies wrongdoing 

A spokesperson of the firm has denied any form of wrongdoing on the part of the firm. According to the statement released on behalf of the firm,  the plaintiffs have mostly filed spurious claims against the firm and other firms that are involved in the crypto industry.

The statement went on to reveal that the firm was planning a defence in the law court. The firm also says it is confident in its defence and believes that the law court would be able to see the merit in their case.

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Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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