BitMEX have landed itself in further more trouble as a resident of Moscow, Dmitry Dolgov, has filed a lawsuit against the firm in the Northern District of California on Wednesday.
Doglov has alleged that HDR Global Trading Limited, the parent company of BitMEX, the exchange’s founders Arthur Hayes, Ben Delo, and Samuel Reed and others, engaged in and facilitated racketeering activities, “earning Defendants billions of dollars in illicit profits.”
The complaint comes two weeks after BitMEX and its founders were hit with legal charges by the Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ). And in a separate lawsuit filed in May, the Puerto Rican company BMA LLC similarly accused BitMEX of engaging in racketeering, money laundering, and market manipulation.
“A money launderer (Defendants) would open two exchange accounts – a helper account on one or more exchanges used by BitMEX to calculate its index price (Coinbase Pro, Kraken and BitStamp) and a winner account on BitMEX,” the lawsuit explains.
“The money launderer (Defendants) would then enter into a large leveraged derivatives position on BitMEX and immediately execute market orders from the helper account with maximum slippage to move the index price in a favorable direction.”
Dolgov claims that he suffered “significant damages” in an amount to be proven at trial.