A California court has dismissed the fraudulent allegations made by traders against the derivatives exchange BitMEX, as the charges are verbose and copied from another lawsuit against the same platform.
As reported by Law360, Judge William Orrick dismissed the plaintiff’s claims that BitMEX participated in market manipulation, incitement to fraud and violated the Anti-Racket and Corruption Act and the Commodity Exchange Act. Judge Orrick concluded that the complaints were “circumstantial” and “lengthy” and stated:
“Only the volume and lengthy nature of the charges can serve as a reason for dismissing the claim. I tried to find a valid statement and I couldn’t. ”
The amended complaint was filed by a group of cryptocurrency traders, including BMA LLC – a company that is notorious for taking legal action against prominent cryptocurrency firms. Judge Orrick dismissed an earlier version of the suit in March on the grounds that it was too verbose.
Although the court explicitly warned that the previous complaint of 237 pages and 600 paragraphs was too long, the amended complaint of the plaintiffs contained 378 pages and more than 1000 paragraphs. The judge ruled that the amended complaint included market manipulation allegations that were copied and pasted from another lawsuit filed against BitMEX in New York.
Plaintiffs are prohibited from attempting to reopen their case, and Orrick denied their request for further amendments to the complaint. The plaintiffs’ legal representative Pavel Pogodin challenged the judge’s statement that the copied text had been used in the amended complaint, and said:
“Judge Orrick did not cite a single case to support his claims regarding copied material.”
Pogodin added that individual traders are planning to press charges again, next time in a California state court.
Recall that in October 2020, the CFTC filed a lawsuit against the management of the BitMEX exchange, accusing him of illegally doing business in the United States and violating KYC and AML rules. In August, BitMEX announced the settlement of claims by the US Commodity Futures Trading Commission (CFTC) and the US Financial Crimes Enforcement Network (FinCEN). The company will pay $ 100 million to settle the claims.
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