Legal Showdown: BitMEX Co-Founder to Stand Trial for Alleged ‘God Access’ Trading Desk

Crypto News- In a legal saga rocking the crypto world, BitMEX co-founder Ben Delo finds himself at the center of a high-stakes class-action lawsuit. The drama unfolded as a United States federal judge paved the way for litigation against Delo, dismissing his bid to evade jurisdiction.

Legal Showdown: BitMEX Co-Founder to Stand Trial for Alleged ‘God Access’ Trading Desk

Judge Andrew Carter’s decisive order, signed on April 3 and revealed on April 8, dealt a blow to Delo’s defense. Citing allegations that Delo played a pivotal role in a scheme to manipulate prices, the judge rebuffed claims of immunity, asserting that Delo had willingly embraced the benefits of U.S. jurisdiction.

At the heart of the lawsuit are damning accusations that Delo, alongside fellow co-founders Arthur Hayes and Samuel Reed, orchestrated a trading desk with unwarranted access to BitMEX user accounts, ominously dubbed the “God Access” desk. The plaintiffs allege that this clandestine operation was leveraged to engineer market moves favorable to BitMEX, thereby maximizing the exchange’s profits at the expense of unsuspecting users.

Ben Delo: Architect, Beneficiary, and Participant in Alleged Misconduct

The court order paints a damning picture of Delo’s involvement, suggesting he not only conceived and designed the controversial liquidation system but also personally profited from its clandestine advantages. Moreover, the lawsuit alleges Delo’s direct engagement in trading activities on the platform, further implicating him in the purported misconduct.

Judge’s Ruling Extends Legal Quagmire to BitMEX and HDR Global Trading

The legal imbroglio doesn’t end there. Judge Carter’s ruling also denied a motion to dismiss from BitMEX and its parent company, HDR Global Trading, underscoring the gravity of the allegations.

For Delo, this legal quagmire adds to his woes, following a previous legal entanglement resulting in a 30-month probation sentence for violating anti-money laundering regulations. Hayes and Reed, his co-defendants, faced similar legal repercussions, marking a significant fall from grace for the once-prominent figures in the crypto realm.

As the legal battle intensifies, the crypto community watches with bated breath, awaiting the outcome of this landmark case that could reshape the regulatory landscape for cryptocurrency exchanges worldwide.