BMA LLC sues BitMEX! BMA LLC sues BitMEX after having filed a lawsuit against Ripple. BMA LLC is accusing BitMEX of orchestrating the largest financial crime in American History.
BMA LLC is a little-known firm. They were formerly known as Bitcoin Manipulation Abatement and they are controlled by Pavel Pogodin. The suit against BitMEX was filed in the US District Court for the Northern District of California on Saturday. They allege that HDR Global Trading, the parent company of BitMEX, perpretrated a vast racketeering conspiracy.
The plot includes wire fraud, money laundering, unlicensed money transmission, interstate transport of stolen property, and violations of the Racketeer Influenced and Corrupt Organizations Act, or RICO.
HDR, through a spokesperson, said the company is aware of the complaint, saying that the complaint “is clearly rehashed from information culled from the internet.” They also said that they would vigorously defend itself from the claim.
They said further:
“BMA has recently emerged as a serial filer of claims against companies operating in the cryptocurrency space, and is widely recognized for operating just like a patent troll… We will deal with this complaint through a normal litigation process and are entirely confident the court will see the claim for what it is.”
BMA alleges that BitMEX’s failure to secure a Money Transmitter License and its ties to US customers means it processed $3 billion in illicit finances each day. BMA also alleges that BitMEX manipulated the cryptocurrency markets by inflating the price of Bitcoin.
BMA launched proceedings against Brad Garlinghouse and Ripple Labs for an alleged $1.1 billion violation of US securities law in its XRP token sale.
This is what our own Kurt Wuckert Jr. has to say.
“At Crypto Traders Pro, we have long supported the notion of free and open business, and breaking down the walls that the banking cartels built a couple generations ago. But rather than leading with honor and dignity in a new frontier, the titans of the Bitcoin exchange space have used their power and wealth to scam smaller investors, and turned the revolution of P2P electronic cash into little more than a colossal Ponzi scheme.
When we try to change the world, we must be above reproach, so it pains me to watch this become almost the entire reputation of the bitcoin economy.”
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