Bitmex, one of the leading crypto exchanges, was sued by the US Commodity Futures Contracts Trading Commission (CFTC) for operating illegal exchanges and anti-money laundering. In the statement made by the ministry after the case, it was informed that the founding partner of the exchange, Samuel Reed, was arrested. These developments negatively affected Bitcoin, causing the price to decline from $ 10,900 to $ 10,490 in a short time.
The US Commodity Futures Contracts Trading Commission (CFTC) sued the exchange’s top officials Greg Dwyer, Arthur Hayes, Ben Delo, and Samuel Reed for violating laws such as running an illegal exchange and preventing money laundering, know your customer. Bitmex has been under the control and pressure of the CFTC since last year as part of its know your customer procedures. With this pressure, the platform implemented KVC policies.
Co-founder could be sentenced to 5 years in prison
As the news of the case spread, the agenda shook again with the statement made by the Ministry of Justice. The Justice Department announced that Samuel Reed, co-founder of Bitmex, has been arrested. It is rumored that co-founder Reed could get a 5-year prison sentence.
Details of the lawsuit filed by the CFTC are included in a 40-page published document. The document includes many other companies as defendants.
Bitcoin price is down
The negative news experienced also affected the market. Bitcoin price reacted with a downward movement to these news on Bitmex, one of the largest exchanges. The bitcoin price fell 2.7% as of the time of writing, hovering at $ 10,491.