The CFTC alleged Hayes, Delo, and Reed directed BitMEX to illegally offer leveraged retail commodity transactions, futures, options, and swaps on cryptocurrency including bitcoin, ether, and litecoin from at least November 2014 until the present.
The defendants allegedly earned fees of more than $1 billion since they started operating BitMEX in 2014.
BitMEX is operating without CFTC approval
According to the CFTC, BitMEX is operating a derivatives trading platform or processing swaps without its approval as a designated contract market or swap execution facility.
BitMEX is also allegedly unlawfully operating as a futures commission merchant by soliciting orders for and accepting bitcoin to margin digital asset derivatives transactions.
Additionally, the CFTC alleged that the company is illegally acting as a counterparty to leveraged retail commodity transactions.
Furthermore, the company allegedly failed to implement know-your-customer procedures, a customer information program, and the anti-money laundering procedures.
