In April 2020, a group of users filed a class action lawsuit against company founders Arthur Hayes, Samuel Reed, and Benjamin Delo. The plaintiffs accused businessmen of creating a system that allowed them to receive undue benefits. According to the authors of the lawsuit, the co-founders of the exchange used access to customer accounts and a manipulation scheme to make illegal profits.
New York District Judge Andrew Carter announced that Benjamin Delo played a key role in creating the fraudulent scheme, being responsible for its development and implementation.
Previously, the entrepreneur asked to dismiss the claim, arguing that the US authorities do not have jurisdiction over him as a British citizen. The court rejected the petition.
Representatives of the BitMEX exchange claim that the company acted as a neutral market maker and did not use customer data for illegal purposes.
Previously, Benjamin Delo received a 30-month suspended sentence for failing to implement BitMEX's anti-money laundering program, violating the Bank Secrecy Act.
Source: Bits
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