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Arthur Hayes, Ben Delo, and Samuel Reed, owners of BitMEX, have been charged by the Commodity Futures Trading Commission (CFTC) with “operating an unregistered trading platform and violating multiple CFTC regulations, including failing to implement required anti-money laundering procedures.”



According to a press release from the CFTC, five entities associated with the owners of the trading platform have also been indicted for violating the Bank Secrecy Act.

HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited, and HDR Global Services (Bermuda) Limited (BitMEX) are some entities that operate with BitMEX owners and are defendants in the complaint.

BitMEX allows users to ‘Trade Bitcoin and other cryptocurrencies with up to 100x leverage.’ It is known to be the largest cryptocurrency derivatives platform with trading volume in billions of dollars. With BitMEX failing to register with the CFTC and complying with the rules set by it, thousand of users, including those in the United States, have jeopardized their funds.

The CFTC also urged users and traders to verify a trading platform’s authenticity and registration before handing over their funds.



According to CoinMetrics data, BitMEX has approximately $2 billion worth of Bitcoin in its vault.

No CFTC approval 

According to the complaint, the three owners of BitMEX were illegally offering commodity transactions, futures, options, and swaps on Bitcoin (BTC), Ethereum (ETH), And Litecoin (LTC). There were charged with operating a facility for trading without CFTC approval.

Additionally, they did not implement KYC or know-your-customer procedures, a customer information program, and anti-money laundering procedures, which is a requirement according to CFTC rules. BitMEX has been under CFTC’s radar since July last year, after which, the trading platform adopted a mandatory KYC policy only April this year.

The complaint stated,

“BitMEX has facilitated cryptocurrency derivatives transactions with an aggregate notional value of trillions of dollars, and has earned fees of more than over $1 billion since beginning operations in 2014.”

Rooting out illegal activities

In support of digital assets playing a part in boosting the economy of the United States, CFTC chairman Heath P. Tarbert said, “For the United States to be a global leader in this space, it is imperative that we root out illegal activity like that alleged in this case.”

He said that market integrity plays an important role in helping “new and innovative financial products” flourish.

“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.”

Ensuring that such activities are pushed out, is important both in the derivatives market, for the economy as a whole and in the digital asset market.

James McDonald, Division of Enforcement Director, said,

“Effective anti-money laundering procedures are among the fundamental requirements of intermediaries in the derivatives markets, whether in traditional products or in the growing digital asset market. This action shows the CFTC will continue to work vigilantly to protect the integrity of these markets.”

Bitcoin attacked by bears

Although the Bitcoin prices have seen slow and steady growth, following the announcement, Bitcoin saw a 1% drop, bringing it back to the $10500 zone. Other digital assets such as Ethereum, Polkadot, Bitcoin Cash, and XRP, among others, also experienced a vertical drop mimicking Bitcoin.

Source: CoinGecko

As reported by The Block, BitMEX’s spokesperson said that the platform intends to “defend the allegations vigorously,” adding that it has always complied with the regulations and laws set by the authorities.


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Ketaki Dixit , 2020-10-01 20:05:53 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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