Yahya 
BitMEX, a prominent crypto currency exchange, finds itself engaged in a dispute as co-founder Ben Delo faces a class-action lawsuit following a ruling by a United States federal judge. The lawsuit alleges that BitMEX engaged in a scheme allowing manipulation of prices on the exchange, with Delo being implicated as a key figure in orchestrating these manipulative practices. This development signals a pivotal moment in the ongoing scrutiny of cryptocurrency exchanges and the regulatory landscape surrounding their operations.
Jurisdictional Dispute Resolved: U.S. Courts to Proceed
Despite Ben Delo’s attempts to evade the jurisdiction of U.S. courts due to his British citizenship, District Judge Andrew Carter of the New York District Court dismissed this argument. In an order signed on April 3 and published on April 8, Judge Carter affirmed the court’s jurisdiction, citing Delo’s substantial engagement with the United States. The judge’s decision underscores the gravity of Delo’s alleged involvement in the manipulative actions, particularly highlighting his role in crafting a “liquidation system” purportedly designed to bolster BitMEX profits during manipulative maneuvers.
The lawsuit contends that BitMEX maintained a trading desk, “God Access” which granted access to customer accounts and information. Plaintiffs argue that this privileged access was exploited to manipulate market prices to the exchange’s advantage. Furthermore, Delo is accused of endorsing crucial financial and trading decisions for BitMEX, including the operation of the controversial trading desk. Additionally, plaintiffs allege that Delo personally engaged in trading on the platform, leveraging privileges unavailable to regular users to potentially exploit systemic vulnerabilities and gain unfair advantages in trading activities.
The outcome of this case could have significant difficulties for the crypto currency industries, as legislation for crypto currencies is on the table, it amplifies further regulations.