A U.S. District Judge has dismissed amended racketeering allegations brought by traders against the parent company of derivatives exchange BitMEX, HDR Global trading, noting that many of the plaintiff’s accusations had been copy and pasted from a different lawsuit filed against the platform.
On Sept. 7, Judge William Orrick dismissed the plaintiff’s claims that BitMEX had engaged in market manipulation, fraudulent inducement, and violated both the Racketeer Influenced and Corrupt Organization Act (RICO) and Commodity Exchange Acts.
According to Law360, Judge Orrick concluded the filings were “conclusory” and “prolix” in nature, stating:
“The size and prolix nature […] alone are grounds for dismissal. I have also searched for a plausible claim and cannot find one.”
The amended complaint was brought forward by a group of cryptocurrency traders including BMA LLC — a company formerly known as “Bitcoin Manipulation Abatement” that is notorious for bringing litigation against high-profile crypto firms — after judge Orrick rejected an earlier version in March on the grounds