BitMEX management withdrew more than $ 440 million, – exchange users say
BitMEX Co-Founders Could Steal Over $ 440 million from accounts
The company denies the withdrawal of this amount from the accounts
Changpeng Zhao considers the situation with BitMEX "alarm signal" for the market
International consortium news organizations, developing transparency standards.
New details appeared in the criminal case against the organizers of the BitMEX cryptocurrency exchange. Now plaintiffs accuse company management of illegal withdrawal from accounts of more than $ 440 million.
Where did depositors’ money disappear?
According to the information of the lawsuit filed by the plaintiff Pavel Pogodin, the executives of the BitMEX cryptocurrency exchange, namely the co-founders of HDR, the parent company of BitMEX – Arthur Hayes, Samuel Reed and Ben Case, illegally withdrew more than $ 440 million when they learned about the pending lawsuit.
IN new In the filing, the plaintiffs argued that “the defendants were aware of the Commodity Futures Trading Commission (CFTC) and DOJ investigations and imminent civil and criminal charges, as well as preparing to flee from the American authorities, the defendants Hayes, Delo and Reed kidnapped about $ 440,308,400 misconduct income, which took place on the BitMEX platform, from the accounts of the defendant HDR, exhibits E, F, G, ”the publication says TheBlock.
“These fraudulent distributions of proceeds from illegal action were made on the following dates after the defendants learned of government investigations and after receiving the project complaints about this lawsuit in 2019: October 15, 2019, November 19 2019 of the year and in January 2020 year “, – said in the statement of claim.
To conceal the withdrawal of this amount from the company’s accounts, the management of the exchange allegedly carried out a deal on “profit distribution”, about than stated in the statement of claim.
Alarm signal for the market
Recall that funds users cryptocurrency exchanges BitMEX was on the verge of freezing after one of the exchange’s founders was arrested. At least so considers analytical firm Coin Metrics. According to company report, BitMEX is different from other cryptocurrency exchanges themes, that instead of allocating reserves to digital and hardware wallets, the exchange exclusively uses the latter option.
how earlier portal reported BeInCrypto, withdrawal of funds from the exchange is being processed only once a day at 16:00 (Moscow time). The operation requires the signatures of two of the three founders of BitMEX, and also one mined key for signing the address prefix (3BMEX or 3BiTMEX). Despite Since the identities of the founders of BitMEX are known, linking the keys directly to the real owners is not an easy task. Coin Metrics has collected data on the latest BitMEX withdrawals and tried to determine who exactly owns the keys..
Reed’s key is believed to have been used twice for authorizing withdrawals from the exchange amid accusations by the Commodity Futures Trading Commission (CFTC), and twice after Reed was released on bail. Key ‘B’, by opinion analysts, belongs Ben Business, and the ‘C’ key to Arthur Hayes.
Despite the fact that user funds remained in relative accessibility, BitMEX lost more half a billion dollars after the CFTC made formal accusations against the management of the trading floor.
Founder and CEO cryptocurrency exchanges Binance Changpeng Zhao stated, that the arrest of one of the founders of BitMEX – this alarm signal for Total market, So what Today already it is impossible to ignore the requirements of the FATF, as well as other regulatory authorities.
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