Bitcoin Sinks Further As FBI And CFTC File Charges Against BitMEX

Bitcoin sinks further as the FBI and the CFTC filed charges against the biggest BTC derivatives exchange BitMEX due to operating an illegal exchange so let’s find more in the latest crypto news.

CFTC and the US Attorney for the District of New York charged BitMEX with operating an unregistered exchange and noncompliance with AML regulations as well as KYC. Therefore, Bitcoin sinks further and is already in the free-fall after the news.

While the CFTC previously filed a civil lawsuit against BitMEX, the FBI is coming after the exchange with criminal charges and the maximum penalty will be 5 years in prison. BitMEX is an extremely popular crypto exchange that introduced perpetual swap contracts for BTC which have now become the main standard in the industry. The exchange is a favorite among the BTC traders because of the ease of access. Before this year, the exchange didn’t require KYC or AML verification but from August this year, they reported implementing mandatory KYC regulations.

The CFTC charged BitMEX for violating regulations including operating an unregulated trading platform as the CFTC chairman noted in the press release:

“We can’t allow bad actors that break the law to gain an advantage over exchanges that are doing the right thing by complying with our rules.”

Arthur Hayes, Gregory Dwyer, Ben Dilo, and Samuel Reed, the owners of the exchange are looking at these repercussions:

“Disgorgement of ill-gotten gains, civil monetary penalties, restitution for the benefit of customers, permanent registration and trading bans, and a permanent injunction from future violations of the Commodity Exchange Act (CEA).”

The Feds charged BitMEX as well for violating the Bank Secrecy Laws which pertain to money-laundering and anti-terrorist activities. Preston Byrne, the lawyer at Anderson Kill Law said:

“Feds are going for the gusto and bringing a parallel criminal case for alleged BSA violations. BitMex isn’t going to be able to settle this with a slap on the wrist and a fine.”

Shortly after the news emerged, the number one cryptocurrency, Bitcoin sinks further after dropping by 1.54% in the first 15-minutes of the announcement. The downfall continued and is approaching the lows of $10,611.