22.3 C
New York
Friday, May 24, 2024

BitMEX Co-Founder Ben Delo Faces Class-Action Lawsuit Over Alleged Price Manipulation

Ben Delo, co-founder of the cryptocurrency exchange BitMEX, is set to face a class-action lawsuit brought by the exchange’s users. This development comes after a United States federal judge ruled that Delo played a central role in an alleged price manipulation scheme.

In a ruling signed on April 3 and made public on April 8, New York District Court Judge Andrew Carter dismissed Delo’s attempt to have the case dismissed on jurisdictional grounds. Despite being a British citizen, Judge Carter stated that Delo had “purposely availed himself of the benefits of the forum — the United States.”

The judge’s order highlighted Delo’s pivotal involvement in the alleged manipulation efforts, stating that he “conceived of and designed” a liquidation system that allowed BitMEX “to profit from the manipulation.”

The class-action lawsuit was initially filed in April 2020 by a group of BitMEX users against the exchange and its co-founders, including Delo, Arthur Hayes, and Samuel Reed. The plaintiffs claimed that BitMEX operated a trading desk with “God Access” to customer accounts, granting them access to sensitive information.

According to the allegations, the co-founders exploited this access to identify market moves that would trigger the liquidation of a large number of user positions, thereby generating profits for the exchange. The lawsuit accused them of intentionally conducting trades to trigger these liquidations and manipulate the market for their own benefit.

While Delo sought to dismiss the case on the grounds that U.S. courts lacked jurisdiction over him, Judge Carter’s ruling paves the way for the class-action lawsuit to proceed against the BitMEX co-founder.

The case highlights the ongoing scrutiny and legal challenges faced by cryptocurrency exchanges and their operators, particularly regarding allegations of market manipulation and unfair trading practices. As the cryptocurrency industry continues to evolve, regulatory bodies and users alike are increasingly demanding greater transparency and accountability from these platforms.

Latest Posts

Don't Miss

Stay in touch

To be updated with all the latest news, offers and special announcements.