Derivatives Exchange BitMEX Hit with a Civil RICO Lawsuit From Bitcoin Manipulation Abatement

Crypto derivatives exchange BitMEX is facing yet another lawsuit.

Puerto Rican company BMA LLC formerly known as Bitcoin Manipulation Abatement is accusing the exchange of “deliberately designed, from the ground up” to facilitate “a myriad of illegal activities.”

This isn’t the first time that BMA is suing a crypto company, as just two weeks ago they filed a lawsuit against Ripple and its CEO Brad Garlingouse for an alleged violation of US securities law in XRP token sale.

Before that, in November, they targeted BitMEX competitor FTX alleging them of price manipulation only to dismiss the case voluntarily a month later.

Now, BMA and Pavel Pogodin who control this little-known firm filed a suit in the US District Court for the Northern District of California alleging BitMEX’s parent company HDR Global Trading reaped billions in illegal profits via wire fraud, unlicensed money transmission, money laundering, and violations of the Racketeer Influenced and Corrupt Organizations Act or RICO.

The plaintiff accused the company of illegally processing $3 billion each day, “which is the record volume for such unlawful activity in the entire history of the monetary regulation in the United States.”

This has been in violation of US federal law on the grounds that BitMEX failed to acquire a money transmitter license, alleges BMA.

Also, about 15% of the $138 billion trading volume recorded by BitMEX in 2019 belongs to the traders located in the US.

BMA also alleges the derivatives exchange manipulated the crypto markets by boosting the Bitcoin price artificially.

The lawsuit further notes the extremely high trading leverage, 100x offered by BitMEX and claims the exchange uses the server freezes and “system overload” to accept and reject trading orders during volatile markets to cause price fluctuations and trigger maximum liquidations.

Plaintiff also took shots at BitMEX co-founder and CEO Arthur Hayes, calling him “cryptocurrency’s P.T. Barnum” who is a “promoter for the ‘degenerate gamblers’ he solicits, and encourages speculative trading by (…) making bold predictions designed to elicit responses and move the market in a way that is profitable for BitMEX.”

HDR Global is aware of the complaint and will be defending itself against the “spurious claim.” An HDR spokesperson said,

“BMA has recently emerged as a serial filer of claims against companies operating in the cryptocurrency space, and is widely recognised for operating just like a patent troll.”

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Author: AnTy

Nearly 70% Of BCH Hashrate is Controlled by Unknown Mining Pools, Is A 51% Attack At Risk?

  • BTC.top formerly controlled 15% of the hashrate, which has dwindled to almost nothing.
  • No information has come from Bitcoin Cash on how this user gained such substantial control.

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One of the biggest threats to the cryptocurrency industry is that of a 51% attack, which is the possibility that holding over half of the control of the blockchain. According to recent reports from CCN and data from Coin Dance, it looks like this threat is heavily present on the Bitcoin Cash network, as an unknown miner presently has 69.44% control of the hashrate.

Surprisingly, the miner has managed to take over the hashrate, despite the presence of more significant mining pools, like BTC.top and Antpool. Though BTC.top accounted for close to 15% of the total hashrate on the network last week, that percentage has essentially disappeared. Antpool’s mining presence dropped by 50%.

The takeover got the attention of a supporter of Bitcoin Cash, who posted the current circumstances to Reddit. The post showed followers that the last 24 hours have significantly changed Bitcoin Cash’s network, remarking, “They can’t be up to much good.”

Right now, there still has yet to be a lead on exactly what is going on within the network. However, there is clearly a chance that some major changes will happen that could change the course of the network, if this mysterious miner uses the power for evil, rather than for good.

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Author: Krystle M

Bobby Lee Predicts “Two More Bubbles” Before Bitcoin Reaches $1 Million Value

  • Bobby Lee was formerly in charge of BTCC, which is one of the longest-running exchange in China.
  • Bitcoin is presently priced at $8,817.46.

Bobby Lee, the former CEO of long-time crypto exchange BTCC and the founder of the Ballet crypto wallet, has plenty of experience in the cryptocurrency industry. Recently, he applied his expertise to Bitcoin, making major price predictions at the Malta AIBC event.

During a recent interview, Lee shed light on the new company that he heads, Ballet. Ballet developed a new hardware wallet that is accessible for Bitcoin and crypto investors globally. Designing a physical wallet follows goals that Lee has expressed for making cryptocurrency more like the current financial system that consumers already understands. In the digital format, Bobby believes that consumers could have difficulty with adopting the assets, but a hardware wallet allows consumers to have a safer place for cryptocurrencies.

The primary coin of the wallet is Bitcoin, though some altcoins are available for storage as well. Those altcoins presently include ETH, XRP, DOGE, and others. According to reports from Bitcoinist, the wallet has a distinct aroma, stimulating the senses but also preventing counterfeits from being developed.

Lee has never shied away from his support for Bitcoin, stating that the price that the token stands at is only a small fraction of the level it can rise to. He believes that Bitcoin is going to continue moving up in price, considering it to be a trillion-dollar asset class.

Explaining Bitcoin’s movement, he says that the price moves in waves, which are bubbles that push up the price. He believes that there will at least be “two more bubbles” before BTC reaches the $100,000 to $200,000 range, pushing to $1 million. He added that these bubbles often increase by 10 to 20 times the previous bubbles, which is why he expects such high prices to transpire.

At the time of writing, Bitcoin was priced at $8,817.46, dropping by 0.22% in the last 24 hours. However, just five days ago, the token was at $9,474.83, demonstrating a downward trend through most of the week.

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Author: Krystle M