BitMEX accused of moving more than $400 million after learning of an ongoing probe

The leadership of the bitcoin derivatives exchange BitMEX allegedly moved more than $400 million from the company’s accounts after learning of an ongoing investigation into the firm. CoinDesk reports.

The allegations are contained in additional filings to the suit, filed in the spring this year in the United States District Court for the Northern District of California by the law firm Consensus Law on behalf of The Bitcoin Manipulation Abatement LLC (BMA).

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They allege that HDR Global leadership (the operator of BitMEX) in the person of Arthur Hayes, Ben Delo and Samuel Reed, knowing about the investigation by US authorities into the company, systematically moved large sums of funds.

The operations took place on October 15 and November 19, 2019, and in January 2020, when the defendants were receiving information about the investigation and the preparation of charges.

It is alleged that, in an effort to reduce the amount that US authorities could seize, BitMEX’s leadership moved a total of $440,308,400. The document does not specify exactly how the funds were moved.

A HDR Global spokesperson vehemently rejected these allegations, noting that Pavel Pogodin of Consensus Law had previously filed several “fabricated” lawsuits not only against the operator of BitMEX but also against other cryptocurrency companies.

“We will act within the normal course of legal proceedings and are fully confident that judges will see the true essence of these suits,” said HDR Global.

Earlier this year, the BMA filed suit against BitMEX on May 16, accusing the exchange of engaging in unlawful activity within the United States, market manipulation, fraud, unfair business practices, money laundering and illegal handling of raised funds.

On October 1, the U.S. Commodity Futures Trading Commission (CFTC) filed a complaint against BitMEX and its owners, accusing them of operating an unregistered trading platform and violating rules in the area of KYC/AML procedures.

In addition, the U.S. Department of Justice brought charges against the exchange’s leadership for violations of the U.S. Bank Secrecy Act.

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