Economist Nouriel Roubini wrote an article where he criticized crypto but also Haye’s business scheme accusing the exchange of money laundering. In the altcoin news below, we take a look at what he exactly stated.

After the debate during the Asia Blockchain Summit, Roubini addressed Arthur Hayes, the CEO of the BitMEX exchange saying that his exchange is involved in terrorist funding and money laundering. He wrote in the article about his major pessimism towards cryptocurrencies and other subjectivities but mainly his accusations quickly escalated:

 “BitMEX insiders revealed to me that this exchange is also used daily for money laundering on a massive scale by terrorists and other criminals from Russia, Iran, and elsewhere; the exchange does nothing to stop this, as it profits from these transactions.”

Roubini noted that ‘’crypto land has become an unregulated casino where the unchecked criminals run riots.’’ However, a paper published by the economist and professor Edgar L Feige says that the majority of the crime is financed by cash-not cryptocurrencies. The Europol and the United States Senate also prove him wrong. His attack on Bitmex was based on the fact that the exchanges are unregulated businesses. For this reason, he noted:

 “Hayes has denied this, but because BitMEX is totally unregulated, there are no independent audits of its accounts, and thus no way of knowing what happens behind the scenes.”

The Economist Nouriel Roubini believes that BitMEX only operates in the United States but in reality, it turns out that the exchange is not ‘’totally unregulated.’’ Every business decides to open where the laws are most convenient. This means that the exchange is not illegal and this has always been the case. There are also many companies and corporations around the world who pour money into Swiss accounts for example where there are low taxes.

Roubini kept on saying that BitMEX supports up to 1:100 leverage and that these operations can be very harmful. In many cases, the clients of the exchange could end up in transactions without being aware of the risks:

 “Arthur Hayes, boasted openly that the BitMEX business model involves peddling to “degenerate gamblers” (meaning clueless retail investors) crypto derivatives with 100-to-one leverage…It is little wonder that, according to one independent researcher’s estimates, liquidations at times account for up to half of BitMEX’s revenue.”

As reported previously in the latest cryptocurrency news, Arthur Hayes has still not responded to these accusations.