Another lawsuit has been filed against BitMEX and its founders alleging extortion, money laundering and market manipulation.
Păun Gabriel-Razvan, a resident of Bucharest, Romania, filed a lawsuit against the stock market in California Northern District Court on Friday. Gabriel-Razvan claims that HDR Global Trading Limited, the operator of BitMEX, participated in and facilitated the extortion activities of the exchange’s founders Arthur Hayes, Ben Delo and Samuel Reed and others, thereby making billions of dollars in illegal profits.
The complaint came a month after plaintiff Dmitry Dolgov, who lives in Moscow, Russia, filed a similar lawsuit against the BitMEX founders. Both Dolgov and Gabriel-Razvan are represented by the same lawyer.
A New 197-Page Case
The new 197-page case claims that the defendants are aware of the Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements and agree to “receive unlimited amounts of money from anyone without asking a single question.” The lawsuit alleges that due to this lack of oversight, hackers, tax evaders, money launderers, smugglers and drug dealers flocked to the stock market and filled it with hot money.
Gabriel-Razvan’s case further alleges that “BitMEX indirectly participated in market manipulation and directly in money laundering and benefited financially from them”. Claiming that he suffered “substantial damages” such as property loss, litigation costs and attorneys’ fees, Gabriel-Razvan claimed three times his actual losses, litigation costs and reasonable attorney fees.
BitMEX and its founders have also been accused by the US Department of Justice and the Commodity Futures Commission of operating an unregistered trading platform, violating KYC and AML regulations and the Bank Privacy Act.