Title: BitMEX Co-Founder Faces Class-Action Lawsuit Over Alleged Market Manipulation
Cryptocurrency exchange BitMEX and its co-founder, Ben Delo, are facing a class-action lawsuit over allegations of market manipulation. U.S. District Court Judge Andrew Carter has ruled that Delo played a central role in designing a liquidation system that allowed the exchange to profit from the scheme.
The lawsuit, filed on behalf of BitMEX users, claims that the exchange engaged in practices that resulted in significant losses for traders. It alleges that BitMEX’s liquidation system was exploited to manipulate prices and generate profits for the exchange.
Judge Carter highlighted Delo’s involvement in the development and implementation of the liquidation system as crucial to the alleged manipulation scheme. This case is part of a growing trend of legal actions targeting cryptocurrency exchanges for fraudulent practices, indicating the need for stronger regulation in the industry.
In October 2020, the U.S. Commodity Futures Trading Commission charged BitMEX and its founders with operating an unregistered trading platform and violating anti-money laundering regulations. The exchange agreed to pay a $100 million penalty to settle the charges.
As the cryptocurrency industry matures, more legal challenges are likely to surface, emphasizing the importance of protecting investors and maintaining market integrity. The outcome of the class-action lawsuit against Ben Delo and BitMEX could establish a precedent for future cases involving market manipulation in the crypto space.
At Extreme Investor Network, we strive to keep our readers informed about the latest developments in the cryptocurrency industry and provide valuable insights on investment opportunities and risks. Stay tuned for more updates on this case and other significant events in the world of crypto.
