US Court Dismisses Racketeering Allegations against BitMEX Parent Company

Friday, 10/09/2021 | 20:12 GMT by Felipe Erazo
  • Judge Orrick stated that many of the plaintiff's accusations were copied and pasted from other lawsuits.
US Court Dismisses Racketeering Allegations against BitMEX Parent Company
court room

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.

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.

About the Author: Felipe Erazo
Felipe Erazo
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Felipe earned a degree in journalism at the University of Chile with the highest honour in the overall ranking, and he also holds a Bachelor of Arts in Social Communication. In addition, he has been working as a freelance writer and Forex/crypto analyst, with experience gained from several forex broker firms and crypto-related media outlets around the world. He has been involved in the world of online forex trading since 2010 and in the crypto sphere since 2015.

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