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BITMEX ACCUSED OF RACKETEERING, MONEY LAUNDERING, WIRE FRAUD, AND UNLICENSED MONEY TRANSMISSION

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Cryptocurrency derivatives exchange BitMEX, and its executives, are facing a lawsuit for alleged racketeering, money laundering, wire fraud and unlicensed money transmission.

 

Deliberately designed for illegal activities?

In a lawsuit filed by BMA LLC in the United States District Court for the Northern District of California on 16 May, BitMEX was accused of being “deliberately designed, from the ground up” to aid or abet in a “myriad of illegal activities.” 

The top of executives of HDR Global Trading, BitMEX’s parent company, including Arthur Hayes, Ben Delo, and Samule Reed, are also individually accused of engaging in, or abetting, the crimes in the lawsuit, with the plaintiff saying the magnitude of the illegality committed at BitMEX is “truly staggering.”

 

Biggest unlicensed money transmission crime in US history?

Though HDR trading is listed in the Seychelles, the lawsuit was brought in California because BMA LLC claim that BitMEX’s executives have close connections to the state, and the Northern District. Backing this up, the plaintiff has cited sources claiming that almost 15% of BitMEX’s trading volume, which was around $138 billion, involved US-based traders – something BitMEX vigorously denies. 

If the accusations are true, it could mean that BitMEX handled around $3 billion of money transfers each day, despite not being licensed as a money transmission business in the United States – which would mean BitMEX was guilty of the biggest crime of its kind in US history. 

The plaintiff also accused HDR Trading of registering in the Seychelles solely to avoid scrutiny, quoting Hayes himself as having said the company had been registered there because it was cheaper to bribe officials than in the United States. 

To give some perspective on this point, despite popular misconceptions, according to Transparency International, the level of corruption in the Seychelles is not high – with the country ranking at 27th out of 180 (with 1 being least corrupt, and 180 being most corrupt). This places it far above countries like Malta, the EU-member state and iGaming/blockchain hub, which ranked 50th. 

 

Allegation after allegation…

But it doesn’t end there. BMA LLC has also accused BitMEX and its executives of racketeering, cryptocurrency market manipulation, wire fraud and many other illegal activities. 

Specifically, the lawsuit claims the way BitMEX operates allows manipulators and money launderers to operate with ease, enabling them to run an unlimited number of anonymous and unverified accounts, subject to no limits. 

It is also claimed that BitMEX deliberately uses fake technical problems, like system overloads and crashes to ensure it can control which specific trading orders are completed during volatile market conditions, and to manipulate price fluctuations and trigger liquidations. 

The exchange is also accused of operating its own for-profit trading desk, that trades against BitMEX’s own customers, making use of inside information. The fact that BitMEX admitted insider trading in April 2018 won’t help their defence on this point. 

In all, there are more than 100 pages of specific allegations in the lawsuit. 

 

AYO.NEWS says:

BitMEX and its executives, especially Arthur Hayes, are no stranger to controversy, but clearly the sheer scale and seriousness of the accusations in this lawsuit have the potential to sink the exchange entirely, and change the lives of its executives. 

With BitMEX also being sued by early investors to the tune of $540 million, the pressure really is mounting on the company. As with all these cases in the United States, it’s sure to be a long-drawn out process, but there will be millions of people watching it closely… 

 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 
All original content featured on this site is © Pentagon Digital Limited, 2020

READ MORE: BITMEX BEING INVESTIGATED BY US REGULATOR?

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Blockchain

VCOIN LAUNCHES DEBIT CARD WITH UPHOLD: IMVU USERS EARN IN-GAME & SPEND IN REAL LIFE

VCOIN has teamed up with Uphold on a debit card that lets IMVU users spend currency earned in-game on real-world purchases.

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Vcoin launches debit card with uphold: imvu users earn in-game & spend in real life

VCOIN, the transferable digital currency used in the social metaverse app IMVU, has launched a debit card in partnership with digital money platform Uphold, allowing users to take value earned inside the virtual world and spend it in real life.

IMVU users can now withdraw VCOIN to an Uphold account and spend it using the Uphold debit card, earning 2% cashback on every purchase, both online and in store.

How the card works

The card is available first to US residents, with international availability to follow. Digital-only cards are free to order and use through the Uphold Card app, while a physical card carries a one-off fee of $9.95. Cashback on purchases is paid into the cardholder’s Uphold account.

From virtual economy to real wallet

VCOIN was first introduced inside IMVU, the friend-discovery and social metaverse app operated by Together Labs. IMVU runs one of the larger virtual economies of any social platform, with around 27 million transactions and 14 billion credits changing hands each month, according to the company.

The debit card closes the loop between that in-app economy and everyday spending. Creators and users who earn VCOIN by selling virtual goods or participating in the community can now convert those earnings into money they can use at ordinary merchants, rather than keeping the value locked inside the app.

A test case for the creator economy

The launch reflects a wider effort across gaming and virtual worlds to let users earn real income from in-game activity. It also highlights the regulatory hurdles involved: by routing withdrawals and spending through Uphold, an established and regulated money platform, VCOIN relies on a partner already set up to handle compliance, identity checks and card issuing.

How widely users adopt the card will be watched closely by other platforms considering whether to let virtual currencies flow out into the real economy.

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ENGLISH PREMIER LEAGUE’S WOLVES ENTER ROCKET LEAGUE CHAMPIONSHIP SERIES

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English Premier League football club Wolverhampton Wanderers (Wolves) has entered the Rocket League Championship Series (RLCS). 

Wolves already fields rosters in FIFA 21, FIFA Online 4, PUBG, Identity V, and Pop Kart Racing, and is the first Premier League club to enter the RLCS. 

Discussing the news Wolves General Manager for Marketing and Commercial Growth, Russell Jones, said:

“Gaming and esports remain a crucial part of our brand growth strategy and signing such talented and ambitious players to represent our Rocket League esports team is another step forward in our journey to build stories outside of football and widen the appeal of the Wolves brand across the world.

“We have spent the last six months scouting teams and players and are delighted to welcome Rix, Luis and Ole, who will become Wolves Esports for the remainder of the current RLCS season X and beyond. We will be offering the team our full support as they compete in the winter split.

“I’d also like to thank the University of Wolverhampton who continue to be an exceptionally supportive partner of the Wolves Esports programme.”

 

While Team Captain of Wolves Esports Rocket League, Rix Ronday, added:

“It is a real honour to captain the first-ever Wolves Esports Rocket League team. I’m confident that we have recruited two of Rocket League’s most exciting talents in Ole and Luis and we are working hard behind the scenes to prepare for the RLCSX Winter Split kick-off.”

 

AYO.NEWS says:

Wolves have already demonstrated their enthusiasm for esports, using it to strengthen what is now a powerful global brand – for example, way back in February 2019, it became the first Premier League club to enter Chinese esports, through a partnership with Weibo eSports Club.

And, given the very real possibility of COVID-19 causing further disruption to football, diversifying the brand into multiple esports seems like a smart way to ensure fan engagement can continue, come what may.

 

 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 
All original content featured on this site is © Pentagon Digital Limited, 2020.
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FIFA 21 CHALLENGE IS MOST WATCHED EA ESPORTS EVENT YET

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The EA SPORTS™ FIFA 21 Challenge has smashed the viewership record, with an Average Minute Audience of over 250K. 

A one-day esports tournament that paired top global professional footballers with the world’s best FIFA players, the EA SPORTS™ FIFA 21 Challenge drew an average minute audience (AMA) of 254,057 with a total watch time of 1,024,696 hours, making the event the most-watched EA operated esports broadcast in history. 

In fact, the broadcast more than doubled the viewership metric set by the next most-watched EA operated FIFA event, the FIFA Global Series FUT Champions Cup: Barcelona, which took place over multiple days in January 2018 and registered an AMA of 92,678.

During the competition, four esports players paired with four professional footballers from international clubs Liverpool, West Ham United, Inter Milan, and Borussia Dortmund, clashed on October 29 for the EA SPORTS FIFA 21 Challenge. 

Liverpool’s Trent Alexander-Arnold and Fnatic’s Tekkz took home the trophy and won $20,000 on behalf of their selected charities

In addition to incorporating celebrity participation to reach non-traditional gaming audiences, the EA SPORTS FIFA 21 Challenge was the first event to utilize FIFA Global Series Viewership Rewards, creating an interactive broadcast for viewers with in-game benefits for watching to further drive engagement and subsequent play time.

Reflecting on the event EA SPORTS FIFA Commissioner, Brent Koning, said:

“EA SPORTS FIFA is woven into the fabric of football culture. Bringing professional footballers and our esports pros together creates entertainment that sets our tournaments apart.

“The success of the FIFA 21 Challenge reinforces our strategy and vision for broadening the esports audience, creating content for our fans, and underscores the value of entertainment-driven events that branch outside of traditional esports.”

 

The FIFA 21 Challenge was a part of a series of EA SPORTS FIFA 21 Global Series pre-season invitationals, featuring notable influencers, footballers, and FIFA pros, in partnership with the interactive entertainment world’s biggest video streaming and content platforms.

It’s a nod to EA’s renewed competitive gaming strategy, which leverages the convergence of traditional sports, competitive gaming, and pop culture to create new, engaging, and accessible broadcasts for diverse audiences.

 

AYO.NEWS says:

Viewership figures like this illustrate just how integrated esports, especially FIFA, is becoming in mainstream football culture, and the growth looks set to continue, and reflects well on EA’s competitive gaming strategy. Last month, EA announced improvements and a bigger prize pool for the upcoming esports season. 

 

 

 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates.
All original content featured on this site is © Pentagon Digital Limited, 2020.
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