The US District Court of the Northern District of California has dismissed racketeering allegations against HRD Global Trading Limited, the parent company of the derivatives Exchange , BitMEX. According to court documents, Judge William H. Orrick determined that the fillings did not have enough legal support to back the plaintiff’s accusations.
In fact, the Judge stated that many of them copied and pasted accusations from a different lawsuit filed against the crypto platform. He also noted that he did not find any plausible claim on them. “I will not consider those copied allegations, for which the Messieh court will determine plausibility. Plaintiffs’ other allegations are insufficient for the same reasons identified in my previous order,” Judge Orrick commented.
“Pursuant to the Order Granting Motion to Dismiss Second Amended Consolidated Complaint With Prejudice, judgment is accordingly entered. The Clerk shall close the case. It is so ordered,” the court order reads, which was dated September 7, 2021. With the court’s decision, plaintiffs are not allowed to challenge the case, as the Judge rejected further amendments. “Focus on the task at hand — convincing me that they have stated a plausible claim,” he added.
Recent BitMEX Settlement with the CFTC and FinCEN
In August, BitMEX settled with the US Commodity Futures Trading Commission (CFTC), and Financial Crimes Enforcement Network (FinCEN) in the context of an investigation pursued against five companies charged with operating the crypto Trading Platform . In addition, the company has agreed to pay $100 million as a civil monetary penalty to resolve the charges.
The consent order was entered before the US District Court for the Southern District of New York. The companies involved were HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited and HDR Global Services (Bermuda) Limited. BitMEX’s team pointed out that such a resolution marks a ‘new chapter’ for the crypto firm.
