Bitcoin slips as CFTC probes BitMEX over client trades

BitMEX caused bitcoin price crash

BitMEX caused bitcoin price crash

The U.S. Commodity Futures Trading Commission (CFTC) is reportedly probing crypto derivatives exchange BitMEX to determine whether it broke rules by allowing U.S traders onto its platform.

In March, Marshall Islands-based firm 1pool Ltd. agreed to pay nearly United States dollars 1 million to settle CFTC charges that it broke rules when offering contracts that used Bitcoin as collateral, according to the report.

Cryptocurrency exchange BitMEX is being investigated by the US Commodity Futures Trading Commission (CFTC).

U.S. regulators have been clamping down on crypto trading firms in recent months. As reported by Bitcoinist, both Binance and Poloniex have been forced to geofence several cryptocurrency tokens from USA traders. Perhaps most notably, at the start of July, the New York Attorney General alleged crypto exchange Bitfinex and affiliated firm Tether had operated in the state as recently as January 2019.

I doubt that this will lead to anything too serious as these probes often don't ever lead to allegations and charges of misconduct.

BitMEX isn't a CFTC-registered platform, thus it is illegal for Americans to trade the crypto derivatives listed on the bitcoin exchange.

Just days ago, noted economist and crypto skeptic Nouriel Roubini attacked BitMEX, saying it "may be openly involved in systematic illegality", again according to Bloomberg.

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Roubini claims that info that "BitMEX insiders" have shared with him says that the exchange shuts its eyes to allow "terrorists and other criminals from Russia, Iran, and elsewhere" launder their money on it and "profits from these transactions".

Regulatory uncertainty has been heightened around BitMEX following the heated debate between the exchange's CEO, Arthur Hayes, and "Dr Doom" Nouriel Roubini.

BitMEX was co-founded in 2014 by Hayes along with Samuel Reed and thirty-five-year-old British national Ben Delo.

The CFTC has so far declined to comment on the record: but if the allegations are true, BitMEX may be completely ducked.

"HDR Global Trading Limited, owner of BitMEX, as a matter of company policy, does not comment on any media reports about inquiries or investigations by government agencies or regulators and we have no comment on this report", a BitMEX spokeswoman said to Bloomberg.

This is a developing story....

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