The 7 Plagues of BitMEX – Fate continues to befall the leaders of the BitMEX platform. While its founder, Arthur Hayes, had to quit his position as CEO, the technical director of the crypto-exchange was arrested and then released on bail.
Arthur Hayes will no longer run BitMEX
On October 1, the US CFTC undermined the cryptocurrency derivatives platform BitMEX . The financial policeman has indeed filed a complaint on 3 charges against the leaders of crypto-exchanges.
In addition to causing a capital flight of $ 570 million in bitcoin (BTC), it completely called into question the management structure of 100x Group , the parent company of the crypto platform.
According to a statement published on the Bitcoin Profit app Vivien Khoo , the group’s former COO, becomes the new interim CEO .
“These changes in the direction of our company allow us to focus on our core business, which is to offer trading services to all our clients through the BitMEX platform (…). To us, business is business and we thank all customers for their continued support. »- David Wong, CEO of 100x Group
As this publication explains, „Founders Arthur Hayes and Samuel Reed have stepped back from their responsibilities as a general manager . “ The latter was also arrested by the authorities of the US state of Massachusetts, the day of the announcement of the complaint from the CFTC (October 1).
Samuel Reed released for $ 5 million
BitMEX’s now ex-CTO, Samuel Reed , was released on probation 2 days after his arrest, according to a crypto-media publication The Block.
Indeed, the District Court of Massachusetts would have approved on October 3 his request for release on bail , request that Samuel Reed had formulated upon his arrest.
Although in the amount of $ 5 million , the bond was only secured by a deposit of $ 500,000 in cash . According to The Block again, „the passports of Reed and his wife were also seized“ .
In exchange for his release, Samuel Reed also agreed to appear in court on his own for all legal proceedings and, if found guilty, to surrender to serve his sentence.
Even if, for now, “ business is business “ for BitMEX, the platform must hasten to put in place regulatory compliance protocols, in particular for the fight against money laundering. As for the 5 founders and ex-leaders of the platform, there is little chance that American justice will leave them alone anytime soon.