BitMex turns to Chainalysis to resolve authorized woes, or at the least soften the CFTC's blow

Nonetheless going through a courtroom assault within the U.S. for allegedly facilitating cash laundering, BitMex is attempting to point out regulators that it is attempting. 

On Jan. 12, the legally besieged crypto change launched a weblog submit promoting additional work with blockchain analytics agency Chainalysis. BitMex mentioned its goal was “to determine, examine, and cease illicit transactions.”

Chainalysis is called a go-to answer for presidency entities trying to observe crypto transactions. The agency 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 funding surrounding a crypto change in Idlib, Syria. It’s this fame for work with governments that BitMex is probably going attempting to use.

The transfer could also be too little, too late. BitMex was theoretically working with Chainalysis even when the Commodity Futures Buying and selling Fee and DoJ filed civil and felony complaints in opposition to the crypto change, its associates and executives at the start of October. 

On the identical day because the weblog submit, BitMex noticed the choose within the CFTC case approve the change’s request to place off a response date, from Jan. 15 to Feb. 12. The CFTC accuses BitMex of intentionally providing unregistered derivatives gross sales to U.S. retail traders, which might lead to fines if proved. The DoJ’s case goes one step additional, alleging that the agency trusted cash laundering as a part of its enterprise mannequin, which might result in jail time for these at BitMex’s helm.

There may be little argument that U.S. individuals did, in actual fact, entry BitMex’s derivatives buying and selling, however the CFTC case will possible hinge on the idea of due diligence in vetting consumer entry. It seems like BitMex is utilizing its additional time to shore up its current compliance measures. Simply final week, the agency introduced that it had verified 100% of customers. 

Neither BitMex nor Chainalysis had responded to Cointelegraph’s request for remark as of publication.