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BitMEX Co-Founder Ben Delo Faces Class-Action Lawsuit
Ben Delo, co-founder of cryptocurrency exchange BitMEX, is set to face a class-action lawsuit brought forth by exchange users, as ruled by a United States federal judge.
Judge’s Determination
Judge Andrew Carter of the New York District Court has determined that Delo played a pivotal role in an alleged price manipulation plot, denying his request to dismiss the suit based on lack of jurisdiction.
Jurisdictional Ruling
Judge Carter’s order, signed on April 3 and published on April 8, asserts that Delo deliberately availed himself of the benefits of the United States, thus falling under its jurisdiction.
Allegations of Price Manipulation
The order highlights Delo’s central involvement in the purported manipulation efforts, stating that he conceived and designed a liquidation system that allowed BitMEX to profit from the alleged manipulation.
Details of the Lawsuit
The class-action lawsuit, filed in April 2020 by a group of BitMEX users against BitMEX and its co-founders, Delo, Arthur Hayes, and Samuel Reed, alleges that the trio operated a trading desk with privileged access to customer accounts, known as “God Access.”
Trading Desk Exploitation
The suit claims that they exploited this access by utilizing customer information to orchestrate trades that would liquidate a significant number of users, thereby generating profits for the exchange.
Legal Consequences
In addition to the class-action lawsuit, Delo, Hayes, and Reed have previously faced legal consequences. In October 2020, US prosecutors filed criminal charges accusing them of evading money laundering rules.
In June last year, Delo pleaded guilty to failing to maintain an Anti-Money Laundering (AML) program at BitMEX, violating the Bank Secrecy Act (BSA), and was sentenced to 30 months of probation. Hayes and Reed also pleaded guilty and received probationary sentences along with a fine of $10 million.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
