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BitMEX a P2P crypto-products trading platform wholly owned and operated by HDR Global Trading Limited, a Republic of Seychelles incorporated entity, that forbids US citizens from participating in trading has been targeted by the CFTC and the DoJ for allegedly offering U.S. customers illicit crypto derivatives trading services.
In response to reports of the U.S. Commodity Futures Trading Commission and Department of Justice’s decision to file charges against HDR Global Trading Limited and related parties, Bitmex released the following statement on its Blog:
“We strongly disagree with the U.S. government’s heavy-handed decision to bring these charges, and intend to defend the allegations vigorously. From our early days as a start-up, we have always sought to comply with applicable U.S. laws, as those laws were understood at the time and based on available guidance.”
“In the meantime, the BitMEX platform is operating entirely as normal and all funds are safe. To allay any potential customer concerns, pending withdrawal requests were processed at 17:45 UTC, in line with our standard procedures.”
BitMEX the world’s largest derivatives exchange, has completed well over 1 TRILLION dollars in successful trades. Bitmex was co-founded in 2014 by Black American entrepreneur, crypto icon, fortune “40 Under 40” and inspiration to crypto traders and entrepreneurs alike CEO Arthur Hayes.
— Arthur Hayes (@CryptoHayes) June 29, 2019
About Mr. Hayes
Arthur Hayes holds a degree in economics from Wharton School of Business at the University of Pennsylvania. And is a Board member of the Jackie Robinson Foundation.
Founded in 1973 by Rachel Robinson, the Jackie Robison Foundation has advanced higher education by providing generous, multi-year scholarship awards coupled with a comprehensive set of support services to highly motivated Scholars (Scholarship Program).
Mr. Hayes worked as a market-maker for Deutsche Bank and Citibank’s Exchange Traded Funds (ETF) business prior to venturing into Cryptocurrency and forming BitMEX which has trade volumes on average are over $3 billion per day.
The indictment, which was accompanied by a civil action by the U.S. Commodity Futures Trading Commission, has attempted to demonized and make Mr. Hayes the “Black-eye” of everything wrong with Crypto, with social media commentators and the same outlets that once praised Mr. Hayes appearing gleeful as they haphazardly toss around micro-aggressions.
Social Media Response
Along with the microaggressions Trolls have taken to Twitter pretending to be Arthur Hayes which at least 1 major crypto media outlet has falsely parroted as fact.
— Crypto Bitlord (@Crypto_Bitlord) October 2, 2020
The glee surrounding the CFTC and DoJ targeting of Mr. Hayes and Bitmex has been quite disturbing, racist, and filled with memes of Mr. Hayes wearing prison outfits and African garb despite Mr. Hayes being born in America.
Leaked Photo of Arthur Hayes right now. pic.twitter.com/u6vgBkYd49
— Mr. Whale (@CryptoWhale) October 1, 2020
Even the US government is no match for what we have built on BitMEX, every ounce of which is compliant with laws. We didn’t do nothing. We will fight. And we will win.
— Arthur Hayes (@Bitmexican1) October 1, 2020
— Gman (@thacryp) October 2, 2020
Perhaps being associated with a TRILLION dollars in the transactions before the age of 40 against all odds is a bit much to take and forces haters to focus on their own shortcomings.
You can hate me now, but I won’t stop now pic.twitter.com/WLbBQx5Yea
— Arthur Hayes (@CryptoHayes) August 8, 2019
Bitmex, a Republic of Seychelles incorporated entity utilizes location detections technology in an attempt to stop US citizens from participating in the exchange under threat of asset confiscation if caught.
“It is prohibited to access or use our services (including the BitMEX trading platform) if you are located, incorporated or otherwise established in, or a citizen or resident of, any “Restricted Jurisdiction” under (and as that term is defined in) our Terms of Service.
Source: Bitmex, front page warning and ussage restrictions
Despite Bitmex’s extensive efforts to comply with US law although a foreign company, the FBI wants to impose fines, restitution, and federal prison time against Bitmex executives.
As we all know the FBI does not make threats, only promises, and thus far has gone as far as arresting Mr. Reed, BitMEX’s chief technology officer.
If American citizens were somehow able to circumvent Bitmex’s location detection technology as alleged, those violations of Bitmex’s terms of service are between the US Government and the alleged citizens. Circumventing tech is quite common and not something the foreign exchange or anyone can control in our view.
“They will soon learn the price of their alleged crimes will not be paid with tropical fruit, but rather could result in fines, restitution, and federal prison time,”
FBI Assistant Director William F. Sweeney Jr. said in a statement.
Crypto regulation by the Trump administration has not slowed crypto trading at all. The Trump administration’s draconian legislation, KYC attempts, and hatred of crypto have had the negative effect of forcing businesses that handle Trillions (Exchange Data) in transaction volume and tech jobs overseas to Crypto friendly countries in a manner very similar to the overburdensome regulations that push manufacturing jobs overseas imposed by the Obama and Clinton Administrations.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Did y’all miss me? I’m back from deepest darkest Peru, ready to cash checks. For those of you in Singapore next week for Invest Asia keep Wednesday night free. We will be two-steppin’ straight to $20k. pic.twitter.com/R0UYHinuHw
— Arthur Hayes (@CryptoHayes) September 3, 2019
ALYI Funding Partners With RevoltTOKEN To Launch $100 Million ICO From Bermuda Read More
— Arthur Hayes (@CryptoHayes) October 20, 2019
The Digital Commodity Exchange Act of 2020
Bitcoin, the largest cryptocurrency, erased gains following the announcement of the CFTC targeting, continue to slide and is currently trading at $10,519.