Cryptocurrency exchange BitMEX faces a class-action lawsuit from users, with co-founder Ben Delo at the center of the legal proceedings. Despite Delo's attempt to dismiss the lawsuit last May on jurisdictional grounds, New York District Court Judge Andrew Carter rejected this request in an order signed on April 3 and issued on April 8, deeming that Delo had knowingly availed himself of the United States forum.
Judge Carter's order highlighted Delo's pivotal role in the alleged price-fixing conspiracy, stating that he was central to the manipulation and had devised a clearing system enabling BitMEX to profit from these activities.
The lawsuit, filed by a group of BitMEX users in April 2020, targets not only BitMEX but also its co-founders Delo, Arthur Hayes, and Samuel Reed. It alleges that the trio utilized customer information to orchestrate trades aimed at liquidating a significant number of users, thereby generating profits for the exchange.
Despite BitMEX's claims of having a neutral market-making role for its trading desk, which it disclosed in April 2018 under external scrutiny, the lawsuit contends that BitMEX continued to engage in activities detrimental to its customers. These alleged actions included trading against customers and burning accounts.
Judge Carter's assessment of the lawsuit emphasized Delo's direct involvement in BitMEX's operations, including his authority over key financial and trading decisions, as well as his personal participation in transactions on the platform. The order suggests that Delo personally benefited from undisclosed advantages stemming from these activities.
