The economist who predicted the global crisis, a crypto currency exchange accused of laundering money from Russia

Economist and perennial critic of Bitcoin and other cryptocurrencies Nouriel Roubini told about the irrefutable evidence of “rampant fraud and abuse” in Cryptoprotected. In particular, a Professor at the new York school of business stern concerned about compliance policy of the crypto currency exchange BitMEX. At least he made special emphasis in his essay The Great Crypto Heist, which on the eve appeared on the website of Project Syndicate.

According to Roubini, anonymous sources from BitMex told about massive money-laundering criminals.

Insiders BitMEX reported that the crypto currency exchange daily is used for money laundering by terrorists and other criminals from Russia, Iran and other countries. The exchange’s management did not oppose this, as it gets its profits from these operations.

Roubini also criticized the policies of the exchange concerning money laundering (AML) and KYC. On top of that, he has information that the exchange violates the securities laws.

In any case, we already know about violations of AML/KYC on BitMEX. Representatives dismiss what does not serve customers from USA and UK — the countries that fall under the jurisdiction of these laws. However, the check is made by IP address, which you can easily forge any VPN app. A lack of due diligence is a flagrant violation of laws and regulations on securities.

Roubini also recalled past debates with the CEO and co-founder of BitMEX, Arthur Hayes. Immediately after the event he tweeted called Hayes a coward who is afraid to rip the band-aid. The economist urged the authorities to intervene to ensure the observance of all rules. He then drew attention to the words of US Treasury Secretary Stephen Mnuchin, who said that Scripturally “largely dominated by illegal activities and speculation”.

In support of his words about the existence of “irrefutable evidence of rampant fraud and abuse,” Roubini mentioned a few studies. At least you can recall the study about 95 percent of fake trading volumes on most kryptomere. There are other studies, which found out that 80 percent of ICO in 2017 was fraudulent.

According to the consulting firm Statis Group, only in 2017 ICO drew 11.9 billion dollars, and thus only of 1.31 billion (or 11 percent) actually ended up in the pockets of fraudsters.

Problems BitMEX

Today became aware of the investigation against BitMEX by the Commission on trade commodity futures (CFTC). The authorities are not pleased that the Americans can use the platform via VPN. It violates the law, so the case will be continued.

Overall, Nouriel Roubini as the main cryptomathic believes cryptocurrency tumor. Do you agree with this opinion or “Dr. Doom” escalating the situation? Let’s discuss it in our cryptodata of hontarov.

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