Ok, reading this CFTC doc still. Will just keep going on this one as a thread on @BitMEX. Ironically, Mr. Reed being a US resident auto-makes it that Bitmex unequivocally serves US persons. Also this finding probably confirms some suspicions I have on activity there.
Operationally, a no no no on this. Hire staff in NYC out of all places? Especially when Kraken Bitfinex pulled out? An exercise in hubris...
Reading more, this is disturbing that using US based service providers is argued as evidence as having US presence. Companies should consider forking Non-US services under another domain.
Seems the CFTC is building a case to show willfull circumvention of their no US person policy. It’s actually amazing the regulators got a hold of all this documentation. Is it a insider whistleblower? Ooohhh, Donnie Brasco like drama...
This is where it gets potentially messy: making every US based investor whole and profit disgorgement if @BitMEX loses this case.
A few years back, but on the other end of the spectrum (hard to believe maybe) is @bitfinex. Cooperated with the CFTC, slapped with 75k USD fine. This contrasts so greatly with the big hole CFTC looks like it’s digging for @BitMEX.
Watch things you say. That coconut 🥥 will come back with a vengeance.
So here is the indictment link: https://www.justice.gov/usao-sdny/press-release/file/1323316/download. Let’s see what it says.
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