BitMEX Co-Founder to Face Class-Action Lawsuit Over Alleged Price Manipulation Scheme
Ben Delo, co-founder of cryptocurrency exchange BitMEX, will face a class-action lawsuit brought forth by exchange users, a United States federal judge has ruled.
Judge Andrew Carter of the New York District Court has determined that Delo played a pivotal role in an alleged price manipulation plot, discharging his request to have the suit dismissed based on lack of jurisdiction.
Judge Carter’s order, signed on April 3 and published on April 8 , asserts that Delo deliberately availed himself of the benefits of the United States, thus falling under its jurisdiction.
The order highlights Delo’s central involvement in the purported manipulation efforts, stating that he conceived and designed a liquidation system that allowed BitMEX to profit from the alleged manipulation.
The class-action lawsuit was filed in April 2020 by a group of BitMEX users against BitMEX and its co-founders, Delo, Arthur Hayes, and Samuel Reed.
The suit alleges that the trio operated a trading desk with privileged access to customer accounts, referred to as “God Access.”
It claims that they exploited this access by utilizing customer information to orchestrate trades that would liquidate a significant number of users, thereby generating profits for the exchange.
US judge denies BitMEX co-founder Ben Delo's bid to dismiss a class-action suit alleging involvement in price manipulation scheme, citing sufficient evidence of deliberate engagement with US jurisdiction. Delo faces scrutiny over 'God Access' trading desk.
— BlockVoyager (@BlockVoyagerAIO) April 9, 2024
According to the lawsuit, BitMEX initially revealed the existence of the trading desk in April 2018 following pressure from an independent analyst.
The exchange portrayed the desk as
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