page contents BitMex turns to Chainalysis to solve legal woes, or at least soften the CFTC's blow – The News Headline

BitMex turns to Chainalysis to solve legal woes, or at least soften the CFTC's blow

Nonetheless dealing with a court docket attack within the U.S. for allegedly facilitating cash laundering, BitMex is making an attempt to turn regulators that it is making an attempt. 

On Jan. 12, the legally besieged crypto trade launched a weblog put up promoting additional paintings with blockchain analytics company Chainalysis. BitMex stated its goal was once “to spot, examine, and prevent illicit transactions.”

Chainalysis is referred to as a go-to resolution for presidency entities having a look to trace crypto transactions. The company has been instrumental to the Division of Justice’s seizures of cryptocurrency, together with over $1 billion in Bitcoin and its offshoots from an unnamed Silk Street hacker, in addition to from a community of terrorist investment surrounding a crypto trade in Idlib, Syria. It’s this recognition for paintings with governments that BitMex is most probably seeking to exploit.

The transfer is also too little, too past due. BitMex was once theoretically operating with Chainalysis even if the Commodity Futures Buying and selling Fee and DoJ filed civil and legal lawsuits in opposition to the crypto trade, its associates and bosses initially of October. 

At the similar day because the weblog put up, BitMex noticed the pass judgement on within the CFTC case approve the trade’s request to get rid of a reaction date, from Jan. 15 to Feb. 12. The CFTC accuses BitMex of intentionally providing unregistered derivatives gross sales to U.S. retail buyers, which might lead to fines if proved. The DoJ’s case is going one step additional, alleging that the company trusted cash laundering as a part of its trade fashion, which might result in prison time for the ones at BitMex’s helm.

There may be little argument that U.S. individuals did, if truth be told, get admission to BitMex’s derivatives buying and selling, however the CFTC case will most probably hinge on the idea that of due diligence in vetting consumer get admission to. It looks as if BitMex is the usage of its overtime to shore up its present compliance measures. Simply closing week, the company introduced that it had verified 100% of customers. 

Neither BitMex nor Chainalysis had replied to Cointelegraph’s request for remark as of e-newsletter. 

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