Source: bitcoinsistemi.com
Author: Serkan Gültekin
Although the lawsuit filed against Binance by the CFTC has caused many new investors to be uneasy, those who have been in this market for a long time are relatively comfortable as they have encountered many similar cases.
When we examine the 2020 Bitmex case, which draws attention with its similarity to the Binance case, we will see that the results are not as bad as expected for the market.
What were the allegations in the Bitmex case?
The CFTC filed a lawsuit against Bitmex and its three founders on October 1, 2020, accusing them of illegally accepting funds from US customers and having them trade Bitcoin, Ether and LTC in derivative markets. The FBI managed one part of the case, asked for prison sentences for the executives, and an executive of Bitmex was arrested.
In this case, the CFTC alleged that Bitmex offered leveraged cryptocurrency derivatives trading to retail and institutional customers in the United States from November 2014 to October 1, 2020, that customers in the United States traded directly through BitMEX's user interfaces, and that BitMEX processed certain transactions He said that he found that he was acting as a counterparty, therefore Bitmex violated DCM, SEF and CEA laws.
The accusations were generally as follows:
“Providing derivative trading opportunities to its customers without registering with the CFTC,
Acting as counterparty in leveraged Bitcoin, Ether and LTC transactions,
Failure to comply with KYC, CIP and AML procedures to prevent terrorist financing and money laundering.”
Did Bitcoin Fall After the Bitmex Case?
Bitmex ranked first in derivatives market volume at the time the lawsuit was filed. For this reason, the impact of the case on the market caused concern, but after the case was heard, there was only a decrease of approximately 2% in Bitcoin.
Are the allegations in the Bitmex case similar to the Binance case?
When we examine the allegations in the Bitmex case, we see that the allegations against Binance are very similar.
CFTC claims that Binance offers cryptocurrency derivative trading such as Bitcoin Ether and LTC to US citizens without the necessary registrations, does not comply with KYC and AML rules, disregards the rules to prevent the financing of terrorism, evades taxes and acts as an intermediary. As can be seen, the allegations are exactly the same as the Bitmex case.
In the lawsuit filed against Bitmex, the CFTC claimed that 15% of the platform's earnings came from US investors. Now it directed a similar claim against Binance and claimed that 16% of Binance's commission income came from US users.
When we examine the documents regarding the Bitmex case, we see that it is very similar to the Binance case. In fact, this similarity makes us think that the petitions at such a point may have been copied and pasted from this case.
So What Happened as a Result of the Bitmex Case?
Approximately 10 months after the lawsuit was filed, Bitmex and its subsidiaries received a $100 million penalty. Bitmex was banned from violating CFTC laws again. While Bitmex was the most popular derivative Bitcoin exchange at that time, it fell to the 5th place and Binance took the remaining seat.
The impact of the case on the markets was not as expected. 2 months after the lawsuit filed against Bitmex (because it was time), the “mega bull” started.
I think the impact of the Binance case will be no different. Although I do not expect a mega bull in 2 months, I do not think that the lawsuit filed against Binance will have an impact on the future of Binance.
Even if the CFTC is proven right as a result of this case, Binance can continue on its way by paying a certain amount of penalty and making the regulations requested by the CFTC.
Source: bitcoinsistemi.com
