BitMEX’s founders, Samuel Reed and Arthur Hayes, have reportedly stepped down from their executive management responsibilities as 100x Group’s – the parent company of BitMEX – CTO and CEO, respectively. This development came immediately after the US authorities’ allegations of criminal misconduct against the company.
As per the firm’s announcement, 100x Group’s current COO, Vivien Khoo, will now be appointed as the Interim CEO. Meanwhile, the commercial director, Ben Radclyffe, is set to stand as support possessing great management authority over client relations and financial products.
Much like their fellow founders, Reed and Hayes will no longer have any executive power over the 100x Group and its subsidiaries. Notably, Greg Dwyer, another co-founder and current business development head, is reportedly set to take an extended leave of absence following this development.
100x Group Chairman, David Wong, commented on this by stating that the leadership they now have is well balanced and is on its way to sustaining the growth and development of the entire company and its branches, such as BitMEX. Wong then expressed gratitude to their clients that continued supporting them amidst the controversies.
The charges made against BitMEX
This October 1st, the United States Commodity Futures Trading Commission, or CFTC, accused BitMEX of actively facilitating unregulated trading on top of other noteworthy violations. The CFTC then explicitly named BitMEX’s founders, Reed, Hayes, and Delo, as offering US-based users with illegal crypto derivative trade services.
Following these heavy accusations going public, BitMEX users rushed in to withdraw their current holdings. Despite this, BitMEX is reportedly unfazed and is conducting businesses as usual.