BitMEX, one of the world’s largest cryptocurrency trading platforms is being investigated by the CFTC (Commodity Futures Trading Commission) which considers cryptocurrencies as commodities.
BitMEX would need to be registered with the agency to allow Americans to trade such commodities in the US, and the platform is being investigated for violations of US financial law. Additional problems in the platform are motivating their clientele to look for other safer markets.
The seriousness of the charges filed against BitMEX remains to be seen. However, there is widespread suspicion that the practice of using VPN to avoid geographical blocking has not only been known by BitMEX, but also sanctioned.
This occurs at a time when regulators around the world are studying professional negligence within the cryptocurrency industry and how to identify and work effectively against it.
A wider range of misconduct problems are also being discovered and BitMEX is being criticized by the renowned economist Nouriel Roubini, who has publicly attacked BitMEX and its CEO, Authur Hayes, saying that BitMEX “can be openly involved in systematic illegality.”
Roubini made a series of claims in a document published on Wednesday, stating that BitMEX is used by terrorists and for generalised money laundering, and that BitMEX allows noncompliance with KYC / AML regulations by design.
Customerd are rushing to withdraw their funds due to unstable performance of the BitMEX platform, the permanent connectivity problems, the liquidations of specific clients and now, the investigation carried out by the US authorities.
And although Arthur Hayes has publicly stated that BitMEX does not trade against its own clients, the fact that so many accusations are beginning to accumulate around the platform is reason to consider what these investigations might actually discover.