BMA LLC, A Stationery And Office Supply Company, Is Suing BitMEX For A Long List Of Alleged Illegal Activities After Getting Rekt

May 18, 2020 / by Crypto.IQ

BitMEX, the most popular crypto derivatives exchange in the world, is being sued in the United States District Court. However, the party suing BitMEX is BMA LLC, a stationery and office supply company, which is quite mysterious considering the nature of the lawsuit.

The lawsuit alleges that BitMEX is the biggest violator of money transmission laws in United States history, claiming that BitMEX allows billions of dollars of trading activity from United States accounts despite having no money transmitter license. Also, the lawsuit alleges that BitMEX is really just a big money laundering scheme, since it allows people to open up as many anonymous accounts as they want without any trading or withdrawal limits.

In fact, this lawsuit calls for BitMEX to be prosecuted under the Racketeer Influenced And Corrupt Organizations (RICO) Act, and in general this lawsuit reads as if it was written by a United States regulatory agency.

Further, this lawsuit alleges that BitMEX purposely manipulates the market, via operating its own for-profit trading desk and ‘weaponizing’ server freezes, seemingly referencing the event on March 12 when BitMEX crashed amid a massive liquidation.

Zooming out, it is clear that BMA LLC lost a ton of money while trading on BitMEX, i.e. got rekt, and they responded by building a full regulatory case against BitMEX in the hopes that federal prosecutors would pick up the case.

This lawsuit seems quite tenuous in general. Basically, BMA LLC is alleging that BitMEX is operating illegally in the United States, but is simultaneously explicitly claiming to have lost tons of money while trading on BitMEX.

Implicitly, this means that BMA LLC was illegally trading on BitMEX, since United States entities are not supposed to use BitMEX, yet BMA LLC is trying to make it look like they were somehow tricked into using BitMEX.

Ultimately, this lawsuit seems to be revenge for a liquidation, and the lawsuit is not really designed to succeed, but rather to give a bunch of dirty laundry on BitMEX to the government. However, considering that the Commodity Futures Trading Commission (CFTC) has been investigating BitMEX since mid-2019, this lawsuit may not make any difference, since the government probably already has all of the evidence presented in this lawsuit.

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