The 7 Wounds of BitMEX – Fate continues to befall the leaders of the BitMEX platform.
While its founder, Arthur Hayes, had to step down as CEO, the technical director of the crypto stock exchange was arrested and released on bail.
Arthur Hayes will no longer run BitMEX.
On October 1, the U.S. CFTC has challenged the BitMEX encryption derivatives platform. The financial policeman filed a complaint on 3 counts against the managers of crypto stock exchanges.
In addition to causing a capital flight of 570 million dollars in Bitcoins (BTC), this completely called into question the organization chart of the management of the 100x Group, the parent company of the crypto platform.
According to a press release on the BitMEX blog, Vivien Khoo, the former COO of the group, becomes the new interim CEO.
„These changes in the management of our company allow us to focus on our core business, which is to offer trading services to all our customers through the BitMEX platform (…). For us, business is business and we thank all customers for their continued support. “ – David Wong, Managing Director of 100x Group
As this publication explains, „founders Arthur Hayes and Samuel Reed have stepped back from their executive management responsibilities. Reed was arrested by authorities in the U.S. state of Massachusetts on the day the CFTC announced its complaint (October 1).
Samuel Reed released for $5 million
BitMEX’s now former CTO, Samuel Reed, was released on probation 2 days after his arrest, according to a publication by the crypto-media company The Block.
The Massachusetts District Court reportedly approved his request for bail on October 3, a request that Samuel Reed had made upon his arrest.
Although in the amount of 5 million dollars, the bail was secured only by a deposit of 500,000 dollars in cash. According to The Block, „Reed and his wife’s passports were also seized.
In exchange for his release, Samuel Reed also agreed to appear in court on his own for any legal proceedings and, if convicted, to surrender to serve his sentence.
Even if, for the time being, „business is business“ for BitMEX, the platform must hurry to put in place regulatory compliance protocols, particularly for the fight against money laundering. As for the 5 founders and former directors of the platform, there is little chance that the American justice system will leave them alone anytime soon.