Can BitMEX Founder’s End of the Affair?
Can BitMEX Founder’s End of the Affair?
BitMEX founders Benjamin Delo and Arthur Hayes have been charged by the US government with conspiracy to commit money laundering, illegally moving currency from one country to another, and also with violating U.S laws prohibiting money laundering. The charges stem from the fact that the pair were attempting to transfer an investment in order to generate income. The problem is that no one can really prove exactly what happened, though the two men have claimed innocence.
The U.S. authorities are seeking a jury trial:
According to the press release, “The U.S. authorities are seeking a jury trial in which BitMEX’s founders will be called as witnesses to testify under oath about their activities and relationships with other members and vendors of the virtual currency exchange. The charges are based on their alleged roles in a criminal enterprise, which operated using the Internet to facilitate its transactions.” In other words, the charges have nothing to do with how the exchange itself operates.
Dollars through investments in the exchange :
In the first few years, the two BitMEX founders had been able to raise millions of dollars through investments in the exchange itself. At one point, they actually planned to expand their operations into a physical location, though they later abandoned that idea because of various economic problems.
U.S. anti-money laundering laws :
In spite of their denials, the two BitMEX founders are being investigated for possibly breaking U.S. anti-money laundering laws. As a result, the value of the BitMEX currency has dropped significantly, to the extent that a large number of new investors have decided to close their accounts with the exchange, which means that many of the people who were previously investing in the exchange could be losing money.
Very important for the administrators of BitMEX :
As an exchange, it is very important for the administrators of BitMEX to maintain the integrity of the system. The exchange provides information about the real time quotes and prices of the currencies that are traded, and it provides an interface on the website in which traders can place orders through an internet broker.
Exchange is currently conducting business improperly :
In the case of Arthur and Benjamin, they have not provided any evidence that the exchange is currently conducting business improperly. The charges are based primarily on the fact that they used an internet broker, and they failed to ensure that the broker was actually licensed and that it did not have any financial ties to any country that could have an influence on the quotes that it provides. In the same way, neither of the two men can be accused of operating an unlicensed online exchange.
There are no charges relating to how the exchange :
Because there are no charges relating to how the exchange is conducting business, there is no indication that the exchange was acting improperly or providing false information when it was being offered for sale, even though the founders of the exchange have been charged. However, since the charges stem from the activities of their investors, they have been left with a decision to make. Will they turn the case over to the authorities?
They face a difficult choice :
In most cases, people choose to remain out of a criminal investigation, at least in part because they believe that the charges will not go far enough. However, in the case of BitMEX, they face a difficult choice. The charges that have been filed against them have a strong chance of being dismissed by a judge or by the jury. If the charges are found to be unjustified, they will be forced to sell their assets and/or face substantial penalties.
Which would force them to sell their assets :
There are two reasons for the BitMEX founders to sell. First, if the charges against them are proven, they will be left with no assets and will lose their entire business. Second, if the charges are not proven, they may become targets of a lawsuit, which would force them to sell their assets and/or face significant penalties.
There is no clear indication :
At present, no one knows what is next for the BitMEX founders. Since the charges are unrelated to the conduct of business, there is no clear indication as to whether the charges will affect their ability to continue operating the exchange. Even if they are found guilty, there is a strong chance that the exchange will continue to operate and will remain operational. or will be dissolved.
As soon as possible, Arthur and Benjamin should decide whether they want to continue their business under the conditions that were proposed to them when they started the exchange. They should also look into whether the BitMEX is still necessary for them to make money in their investments. If this is the case, then they need to take action quickly.