Posted 6 months ago | by @devadmin
According to a lawsuit, the top officers of HDR Global Trading Limited, the parent company of crypto trading platform BitMEX, which has previously been charged with facilitating unregistered trading and other violations, is being accused of looting $440,308,400 from HDR accounts, a civil lawsuit claims. A spokesperson for HDR called the claims “spurious” in a statement to The Block Crypto.
The suit, filed on behalf of plaintiffs BMA LLC, Yaroslav Kolchin, and Vitaly Dubinin, solicits an order of seizing against HDR assets, while claims against HDR are being litigated. The allegations were included in an October 30th court filing. That filing is the latest in a months-long lawsuit filed in May against Bitmex which alleges HDR and co-founders Arthur Hayes, Ben Delo, and Samuel Reed of market manipulation and money laundering, as Bitboy Crypto reported.
“While being keenly aware of the Commodity Futures Trading Commission (‘CFTC’) and Department of Justice (‘DOJ’) investigations and imminently forthcoming civil and criminal charges, and while preparing to go on a lam [sic] from the U.S. authorities, Defendants Hayes, Delo, and Reed looted about $440,308,400 of proceeds of various nefarious activities that took place on the BitMEX platform from Defendant HDR accounts,” the suit alleges.
“These fraudulent distributions of proceeds of illegal acts were made on the following dates, which are after Defendants learned about the Government investigations and after receiving a draft complaint in this action in 2019: October 15, 2019, November 19, 2019 [and] January 2020,” the filing went on to allege, referring to the transactions as “profit distributions.”
The filing claimed:
“From this information, it appears that Defendants were actively and deliberately looting Defendant HDR and trying to make its funds unavailable for the collection of future judgments against it. Specifically, the aforesaid profit distributions at a rate of $440,308,400.00 in just three months were clearly not performed in the ordinary course of business of Defendant HDR, as they represent $1,761,233,600 annual profit distribution rate, which money Defendant HDR simply does not earn. Therefore, these extraordinarily large distributions were clearly designed to loot Defendant HDR of its assets and hinder Plaintiffs’ and Government’s recovery of any future judgments.”
The suit challenges the alleged looting occurred to reduce the number of assets that could be seized by authorities when charges were brought.
An attached exhibit failed to specify how the funds were seized but alleged that the executives began diverting BitMEX’s profits after becoming aware of possible charges in 2019.
On Oct. 1st, the U.S. Commodities Futures Trading Commission (CFTC) and the Department of Justice both announced charges against BitMEX, one of the biggest crypto derivatives trading platforms, and its senior executives.
A spokesperson for HDR Global Trading Limited denied the claims, stating: “Pavel Pogodin of ‘Consensus Law’ has filed a series of increasingly spurious claims against us and others in the cryptocurrency sector. We will deal with this through the normal litigation process and remain entirely confident the courts will see his claims for what they are.”
Bitcoin is currently being traded at [FIAT: $13,755] DOWN –0.3% in the last 24 hours, according to Coingecko at the time of this report.