The US Commodity Futures Trading Commission (CFTC) continues to work hard to protect US citizens from the cryptographic market.
James McDonald, Director of CFTC Compliance, has made the following announcement:
„The CFTC will continue to work to protect our markets, including the growing markets for digital assets such as Bitcoin, from fraudulent schemes, and will work alongside our fellow criminal law enforcement officers where necessary“.
Another but not the last victim of the CFTC was Jon Barry Thomson, who pleaded guilty to convincing two investors to send him over $7 million for a bitcoin investment scheme that was never implemented.
The day before, the Commodity Futures Trading Commission filed a lawsuit against BitMEX, a major cryptoderivatives exchange. The trading platform and its managers are accused of servicing an unregistered trading platform and of violating anti-money laundering rules.
The defendants are BitMEX CEO Arthur Hayes, co-founders Ben Delo and Samuel Reed, parents of HDR Global Trading Limited and 100x Holdings Limited, as well as ABS Global Trading Limited, Shine Effort Inc Limited and HDR Global Services (registered in Bermuda). According to the Commission, since its inception in 2014, BitMEX has offered traders illegal cryptographic trading services with approximately $1 trillion in debt financing. At the same time, the exchange has not registered with the CFTC and has not been concerned about implementing KYC and AML procedures for its clients.
The crusade against the exchange resulted in serious losses – after information about the lawsuit, traders hurried to leave the platform and withdraw their blood. According to analysts, more than 42,000 Bitcoins worth more than $443 million were withdrawn from the exchange within the first 24 hours after the announcement. 170,000 Bitcoins ($1.8 billion) were believed to have been stored on the exchange, which means that BitMEX left almost 25% of the funds stored on it.
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