Tuesday, January 19, 2021
Home XRP - Top 10 BitMex Exchange Denies Charges of Violation of The Bank Secrecy Act

BitMex Exchange Denies Charges of Violation of The Bank Secrecy Act

In a blog post on Thursday evening, BitMex lashed out at charges that the Commodity Futures Trading Commission and Department of Justice filed against the trade and its administration prior. Both institutions accused Hayes — alongside fellow benefactors Ben Delo and Samuel Reed — for working an unregistered exchanging stage and disregarding CFTC rules.

BitMex’s announcement asserted that they have always sought to comply with applicable U.S. laws from initial starting days. Furthermore, they claim that they understood the laws at the time, based on available guidance.

CFTC Charges Against BitMex

Characterizing what pertinent U.S. laws are will probably be imperative to the situation. BitMex, since long ago, keeps up that it doesn’t serve clients in the U.S. However, others before the CFTC and DOJ contended that as a falsehood. The CFTC’s case lies in BitMex’s inability to enroll with the commission as a subsidiary trade in the U.S. 

The 40-page CFTC complaint names HDR Global Trading Limited, BitMex’s parent organization. Additionally, it points out 100x Holdings Limited, ABS Global Trading Limited, Shine Effort Inc Limited, and HDR Global Services (Bermuda) Limited as respondents.

The objection accused BitMex of working an office to exchange or handle trades without having CFTC endorsement as an assigned agreement market or trade execution office. It was also accused of doing as a prospects commission shipper by requesting and tolerating bitcoin to edge advanced resource subsidiaries exchanges.

The DOJ contends that BitMex purposely neglected to execute compelling know-your-client and against illegal tax avoidance programs, disregarding the Bank Secrecy Act. The two organizations attest that BitMex had warnings that their tasks were unlawful. 

In its post denying the charges, BitMex guaranteed clients that exchanging will proceed normally. 

Criminal Charges Filed Against THE Exchange’s Associates

In a separate action, the Department of Justice filed criminal charges against Hayes, Delo, Reed, and BitMex head of business development Greg Dwyer for violating the Bank Secrecy Act. According to the DOJ press release, Reed was arrested in Massachusetts on Thursday morning “and will be presented in federal court there.”

FBI associate chief William Sweeney said in a statement that the four litigants, through their organization’s BitMex crypto exchanging stage, obstinately abused the Bank Secrecy Act. It was by dodging the U.S. hostile to tax evasion necessities.

 He also stated that one defendant went as far as to brag that the company incorporated jurisdiction outside the U.S. because bribing regulators in that jurisdiction cost very little.

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