BitMEX Co-Founder Faces Class-Action Suit Over Alleged Manipulation Scheme

A United States federal court judge ordered Ben Delo, BitMEX co-founder, to answer the class-action lawsuit against him. The allegation claims that BitMEX deployed a trading scheme to affect the level of prices. It mentions that Delo is the key person in this scheme. Such a step puts cryptocurrency exchanges and their activities under strict law enforcement.

The court ruling came from Judge Andrew Carter, the New York District Court judge. Delo, a British national, had no legal backing and called the courts to decline jurisdiction over him. However, Judge Carter did not accept the argument in the order signed on April 3, which became public on April 8. The judge confirmed that Delo interacted sufficiently with the US to fall within the definition of what is already part of the US.

Moreover, Judge Carter emphasized Delo’s significance regarding the alleged manipulative actions. The judge referred to Delo’s role in drafting a “liquidation system” designed to generate profits for BitMEX during the manipulative maneuvers.

According to the lawsuit, this system gave BitMEX a trading desk with “God Access,” enabling it to access customer accounts and information. The plaintiffs argue that BitMEX used this access to manipulate market prices to the exchange’s advantage.

BitMEX Lawsuit Raises Cryptocurrency Regulation Concerns

Moreover, The lawsuit also accuses Delo of approving key financial and trading decisions for BitMEX, including the operation of the controversial trading desk. Additionally, the plaintiffs allege he traded on the platform, enjoying privileges that ordinary users didn’t have, potentially exploiting systemic vulnerabilities for trading advantages.

Moreover, as legal proceedings progress against Ben Delo, this lawsuit could significantly impact the cryptocurrency industry, especially regarding how exchanges are designed and operated. The increasing digitalization of money and its inclusion in the global financial system are critically analyzing the ethics and morality of these platforms.

Furthermore, the BitMEX case underscores the need for regulatory clarity in cryptocurrency and highlights the potential legal risks facing founders and operators of digital asset exchanges. The industry may face scrutiny, and this case could suggest future regulation and enforcement of laws for digitized currency trading.

Related Reading | Crypto Advocacy Groups Back Developer In Legal Fight

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risk.

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