ORIGINAL DECRYPT ARTICLE HERE: https://decrypt.co/43575/breaking-news-cftc-charges-crypto-exchange-bitmex-with-money-laundering-violations By Jason Nelson


The U.S. federal court action charged the owners of the exchange with operating an unregistered trading platform, and failing to impose anti-money laundering procedures, and other violations. Criminal charges were also filed.


n brief

  • The U.S. CFTC filed money-laundering and related charges against exchange BitMEX.

  • The regulatory enforcement agency said that BitMEX was illegally operating in the U.S.

  • Separately, the U.S. Attorney in New York filed related criminal charges against the owners, Arthur Hayes, Ben Delo, and Samuel Reed.


The Commodity Futures Trading Commission filed money-laundering and other civil charges against BitMEX, for illegally operating in the U.S. today. 

In a separate indictment unsealed today, the U.S. Attorney for the District of New York also filed criminal actions against the exchange’s owners, Arthur Hayes, Ben Delo, and Samuel Reed, for violating the Bank Secrecy Act and conspiracy to violate the Bank Secrecy Act.  

The civil action


The civil court action, filed in the U.S. District Court for the Southern District of New York charged the owners with operating an unregistered trading platform, and failing to impose anti-money laundering procedures, and other violations. Hayes, Delo, and Reed, were named as the owners and cited as operating  “BitMEX’s platform through a maze of corporate entities.”

“Digital assets hold great promise for our derivatives markets and for our economy,” said Chairman Heath P. Tarbert. “For the United States to be a global leader in this space, it is imperative that we root out illegal activity like that alleged in this case."

BitMEX was not immediately available for comment.

The civil case was brought by the Division of Enforcement’s Digital Asset and Bank Secrecy Act Task Forces.

Also named on the suit were HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited, and HDR Global Services (Bermuda) Limited (BitMEX).


The scope of the case


The CFTC claimed that BitMEX “received more than $11 billion in bitcoin deposits and made more than $1 billion in fees, while conducting significant aspects of its business from the U.S. and accepting orders and funds from U.S. customers."

The CFTC said that BitMEX describes itself as the biggest derivatives-trading platform in the world and handles billions of dollars worth of transactions daily. "Much of this volume, and related transaction fees, derives from the operation of the platform from the U.S. and its extensive solicitation of and access to U.S. customers," the agency claimed. "Nevertheless, BitMEX has failed to register with the CFTC, and has failed to implement key safeguards required by the CEA and CFTC’s regulations designed to protect the U.S. derivatives markets and market participants."


The complaint


"The charges BitMEX with operating a facility for the trading or processing of swaps without having CFTC approval as a designated contract market or swap execution facility, and operating as a futures commission merchant by soliciting orders for and accepting bitcoin to margin digital asset derivatives transactions, and by acting as a counterparty to leveraged retail commodity transactions. The complaint further charges BitMEX with violating CFTC rules by failing to implement know-your-customer procedures, a customer information program, and anti-money laundering procedures."

"As alleged in the complaint, BitMEX touts itself as the world’s largest cryptocurrency derivatives platform, with billions of dollars’ of trading volume each day. Much of this volume, and related transaction fees, derives from the operation of the platform from the U.S. and its extensive solicitation of and access to U.S. customers, the complaint alleges. Nevertheless, BitMEX has failed to register with the CFTC, and has failed to implement key safeguards required by the CEA and CFTC’s regulations designed to protect the U.S. derivatives markets and market participants."

FULL COINTELEGRAPH ARTICLE HERE:


https://cointelegraph.com/news/crypto-prediction-markets-turn-against-trump-after-first-debate

Emerging Ethereum-powered predictions platform Polymarket produced six-figure volume amid the first presidential debates.

The first debate of the 2020 U.S. presidential election had no clear winner, but crypto-powered prediction platforms are having a field day. 

Election futures on crypto derivatives exchange FTX boomed, with the platform’s CEO reporting more than $4 million in open interest trying to pick the winner between Democrat Joe Biden, and Republican Donald Trump. On FTX, Trump’s brash debate performance got a big thumbs down and drove a 10% crash in the price of futures contracts backing his re-election.

Price of TRUMP futures on FTX: FTXVolumes on FTX are amplified by leverage. On predictive platforms that do not offer leverage, more modest six-figure volumes were recorded. Polymarket saw more than $100,000 in volume flow into its ‘Will Trump win the 2020 U.S. presidential election?’ market on September 30, with sentiment similarly shifting against the incumbent president over the course of the debate. Almost 55 percent believe Trump will not win the election.

Speaking to Cointelegraph, Polymarket founder, Shayne Coplan, said the platform was designed to find answers to issues “people really want to know about rather than just things that they want to speculate:”

“The beautiful thing about markets, in my opinion, is their ability to aggregate information and synthesize it into accurate forecast. That’s what price discovery is — aggregating everyone’s opinions and knowledge and synthesizing it into one metric. And that can have incredible social and informational value.”

Polymarket is built on Ethereum (ETH), however, is exploring Matic as a scaling solution for the interim leading up to the launch of ETH 2.0. Transactions executed on the platform do not carry fees and Polymarket is non-custodial.

The platform uses an automatic market maker (AMM) for price discovery, with all market participants effectively trading against the AMM’s liquidity pool. Ideas for markets can be submitted from Polymarket’s users, and are curated by firm’s executives to ensure that the terms and conditions pertaining to specific markets are “unambiguous.”


Well it feels like we have been here before....or if you haven't you are probably having kittens right now. Your parents nest egg that you hastily ploughed into crypto for 'sure fire gains' that their 'safe pair of hands IFA' isn't capable of is tanking and it seems like the end of the world. Is it? Well probably not..but then again?


How do you explain to the noobs that this is part of the process? Well you can start by teaching them that history is the best place to look for future events. Also that they shouldn't be playing with money that they can not afford to lose in the volatile world of crypto currencies. Its hard to temper you emotions when everyone you see is making untold sums by farming their latest defi 'shitcoin' and laughing all the way to the bank...often with unrealised gains!


Take a breath people..steady your nerves and again question why you got into this space. If its for sure fire fast gains you may need to reevaluate !!

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