BitMEX Rejects Bold Lawsuit Claims as 'Clearly Rehashed' Internet Bunk

BitMEX, one of the most popular derivatives exchanges in the cryptocurrency market, has come under fire with accusations of being purposefully designed to facilitate "a myriad of illegal activities." The accusations were made in a lawsuit filed by BMA LLC in the United States District Court for the Northern District of California on May 16.

It does not show any way in which BitMEX actively marketed to a U.S. user base besides inviting customers in the country to try out the BitMEX testnet version.

In order to justify accusations of money laundering, for example, BMA LLC claims that BitMEX has allowed illicit funds to pass through the exchange.

The virtually unknown firm's recent history in targeting cryptocurrency companies suggests the lawsuit may not hold up in court, such as was the case with its previous action against FTX. While some accusations may not be backed by hard evidence at first sight, others seem to be fairly substantiated and also highlight well-known issues within BitMEX's platform, including its frequent downtimes that have reportedly caused traders to lose funds and its high leverages which go up to 100 times.

The claims were similar to the ones BitMEX is now facing: racketeering, market manipulation and unlicensed securities sales, among others.

While BitMEX and other companies accused by BMA LLC state that the company is somewhat of a serial lawsuit filer hoping to take advantage of the cryptocurrency industry, this is not the first time that BitMEX has faced legal complaints.

One were also mentioned along with BitMEX in the lawsuit filed by the firm Roche Cyrulnik Freedman LLP in a Manhattan federal court.

Only hours after the lawsuit was reported on by Cointelegraph, BitMEX suffered yet another outage, which has become somewhat of a usual occurrence.

The lawsuit at hand actually accuses BitMEX of "Weaponizing deliberate server freezes, using fraudulent 'system overload' events to accept some trading orders and reject others" - a market manipulation practice.

It's not clear if the goal of this lawsuit is to "Attack" BitMEX's reputation or to receive actual compensation, but judging by the contents of the lawsuit and BMA LLC's history, the suit will most likely be dismissed or dropped.