Seychelles-based cryptocurrency exchange BitMEX is being probed by the U.S. Commodity Futures Trading Commission (CFTC) over client trades.
The news appeared on Bloomberg Terminal soon before press time on Friday, and was followed by a tweet from the newspaper’s tech columnist Tim Culpan.
*U.S. REGULATOR PROBING CRYPTO EXCHANGE BITMEX ON CLIENT [email protected] under investigation, just two weeks after that @Nouriel v @CryptoHayes Tangle in Taipei.
— Tim Culpan (@tculpan) July 19, 2019
CoinDesk will monitor the breaking news and update this report as soon as more information is available.
Just days ago, noted economist and crypto skeptic Nouriel Roubini attacked BitMEX, saying it “may be openly involved in systematic illegality,” again according to Bloomberg.
Roubini argued that, in providing up to 100-times leverage, the platform is exposing traders to too much risk.
Reportedly citing an anonymous blog, he also allaged that the exchange trades against its own clients and “skirts” anti-money laundering regulations.
BitMEX CEO Arthur Hayes has previously said it never trades against clients.
Hayes also told Bloomberg this week:
“We continue to monitor all legal and regulatory developments around the world and will comply with all applicable laws and regulations; we reject any allegations of criminality, manipulation or unfair treatment of our customers, who are at the center of everything we do.”
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