First, because US citizens still traded on the exchange. (mostly through a VPN); and second, Bitmex was offering a synthetic USD product. That's worse than being a non-regulated entity that offers real dollars.
Besides the office in Manhattan, I'm sure you mean?
https://www.justice.gov/usao-sdny/press-release/file/1323316...
Page 8.
this is pretty default behavior for the US
everything anyone told you about the US dollar use being needed to establish jurisdiction was a lie, I have literally only heard that from crypto people, arent these the same people that used to say “litecoin is asic proof because its memory hard” lmao
right, not new news.
The criminal charges are around the Bank Secrecy Act and Conspiracy to circumvent some Bank Secrecy Act requirements
What right? Its not a right its a privilege the US has that most countries around the world will listen to it. Many countries have laws to exercise jurisdiction outside of their borders, they’re just irrelevant. They are irrelevant markets, irrelevant geopolitically, have no resources to pursue or even bother charging people, faces actual consequences from trading partners if they did try, everything is distinctly opposite for the US.
https://www.justice.gov/usao-sdny/press-release/file/1323316... (Page 8)
It wasn't an America bad argument, it was a global hegemony acknowledgement.
How do you read me talking about how almost everywhere is literally "irrelevant", my words, by all metrics and get an "America bad" argument out of it?
Could have just left that out.
The jurisdiction of any sovereign state is whatever that state says it's jurisdiction is; extraterritorial jurisdiction is not at all uncommon.
In order for an entity to have externally-imposed limits on its jurisdiction, it would have to be answerable to a superior soveriegnty (which would itself either be or be answerable to, perhaps through more layers, an entity without such limitation.)
If[0] they posted on American forums or solicited customers on American-hosted sites, they operated in the US for the purposes of the law. You don't have to physically be somewhere to be subject to the law there. Ditto wire and mail fraud that originates overseas.
Mailing a pipebomb from Canada to the US is illegal in Canada, but it's also illegal in the US, even if it was done by a Canadian citizen who didn't step foot here.
Operating outside American AML/KYC law is not quite the same as mailing a pipe bomb, but the jurisdictional issue is hard to distinguish.
[0] (this remains to be proven)
> With the opportunities and advantages of operating a financial institution in the United States comes the obligation for those businesses to do their part to help in driving out crime and corruption.
Of course that world order is coming down fast because nobody in the US cares about maintaining it as much as they are interested in proclaiming it.
The best way to stop terrorists are with their funding. Stop the funding and they wither on the vine.
One way they might know is by seeing people posting online about how they used VPNs to get around the block. Crypto traders are often bad at being subtle.
It also alleges that they solicited American customers, which presumably they also have evidence of. For instance, maybe advertising on American websites or posting on forums they knew were frequented by Americans, etc. Maybe they posted winking messages that told Americans how to get around the IP ban? All sorts of possibilities.
Edit: from the indictment, page 7: "internal BitMEX records reflected thousands of BitMEX accounts with United States location information that were enabled for trading." So people volunteered their location information to BitMEX.
Page 12: "the defendants, knew that specific customers, residing in the United States, continued to access BitMEX' s platform... DELO and DWYER knowingly allowed one of these customers to access BitMEX using a non-U. S. passport in the name of a third party that did not belong to this customer. DELO also allowed another customer to continue to access a BitMEX trading account despite this customer being "US based," because "[h]e's famous in Bitcoin," and falsely changed this customer' s internal country of residence to a country other than the United States."
Less trivially: other, out-of-band clues based on support emails sent to BitMEX; location information in BitMEX profile; same username on other platforms and mention of location; that sort of thing