BitMEX co-founder Ben Delo has been hit with a class action lawsuit alleging market manipulation. A U.S. judge ruled that the exchange played a central role in designing a clearing system that would benefit from the scheme.
BitMEX co-founder Ben Delo, a British citizen, faces a class action lawsuit from users after U.S. District Court Judge Andrew Carter ruled he played a central role in the cryptocurrency exchange’s price manipulation scheme. Is expected. The ruling came after Dello requested the lawsuit be dismissed, but Judge Carter concluded that he played a key role in designing a clearing system that allowed BitMEX to profit from the alleged manipulation.
The class action lawsuit filed on behalf of BitMEX users alleges that the exchange engaged in market manipulation practices that resulted in significant losses for traders. The plaintiffs allege that BitMEX’s liquidation system, which was designed to automatically liquidate positions when a trader’s balance falls below a certain threshold, was abused to manipulate prices and generate profits for the exchange.
According to court documents, Judge Carter found Dello’s involvement in the development and implementation of the clearing system was critical to the manipulation scheme. The judge noted that Delo’s technical expertise and leadership position at BitMEX made him a key figure in the case.
This is not the first time BitMEX has faced legal trouble. In October 2020, the U.S. Commodity Futures Trading Commission (CFTC) charged BitMEX and its founders, including Delo, with operating an unregistered trading platform and violating anti-money laundering regulations. The exchange agreed to pay a $100 million civil penalty to settle the charges.
The class action lawsuits against Delo and BitMEX are part of a growing trend of legal actions targeting cryptocurrency exchanges for alleged market manipulation and other fraudulent practices. In recent years, several major exchanges, including Binance and Coinbase, have come under increased scrutiny from regulators and law enforcement agencies around the world.
As the cryptocurrency industry continues to mature, more legal challenges are likely to arise, highlighting the need for stronger regulation and oversight to protect investors and maintain market integrity. The outcome of the class action lawsuit against Ben Delo and BitMEX could set an important precedent for future cases involving alleged market manipulation in the cryptocurrency industry.
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