BitMEX escaped disaster when Judge William Orrick dismissed allegations of market manipulation – Sept 09

A U.S. district judge dismissed the amended fraud allegations against BitMEX derivatives exchange’s parent company, HDR Global Trading Limited, noting that many plaintiffs’ allegations were copied from one lawsuit. In contrast, other cases were filed against that platform.

On September 7th, Judge William Orrick denied claims that BitMEX engaged in market manipulation and fraud. He violated both the RICO (Racketeer Influenced and Corrupt Organization Act) and the Commodity Exchange Act from plaintiffs conclude:

“Just the size and the lengthy, cumbersome nature […] was a reason for rejection. I also tried to find a legitimate claim in it but couldn’t find one. “

The revised complaint was filed by a group of traders, including BMA LLC – a company formerly known as Bitcoin Manipulation Abatement and known for suing large crypto companies – after Judge Orrick rejected the previous version in March because it was too detailed.

Although the court clearly warned that the previous lawsuit was too long at 237 and 600 paragraphs, the plaintiffs’ revised version was 378 pages long and comprised more than 1,000 paragraphs.

The judge also ruled that the revised lawsuit, which includes allegations of market manipulation, was inserted from another BitMEX lawsuit filed in New York.

“I will not take into account these allegations of copying, but the Messiah Court will determine the validity. The plaintiffs’ other allegations are unfounded for the same reasons given in my previous order. “

Plaintiffs were not allowed to reopen the case, and Orrick denied the request for further amendment.

Pavel Pogodin, the plaintiffs’ legal representative, disagreed with the judge’s statement that the revised complaint contained text copies:

“Judge Orrick did not substantiate his claims about the copied material.”

Pogodin added that individual traders who dropped the lawsuit earlier this month plan to re-file cases in a California court.

In July, Judge Orrick criticized the plaintiff’s attorneys after alleging the judge did not understand cryptocurrencies properly and suggested learning the “basics” of digital assets. Judge Orrick declined the offer, making it clear that “we are focused on the task at hand – convince me that you have made a reasonable motion.”

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Annie

According to Cointelegraph

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