Troubled crypto trading platform BitMEX is beset by opponents on all sides, facing a reported investigation from the US Commodity and Futures Trading Commission (CFTC), as well as complaints about its advertising practices in the UK.

The last thing it needs right now is the departure of Angelina Kwan, its chief operating officer, who was appointed less than a year ago, to build bridges and collaborate with global compliance and regulation authorities.

However, despite her appointment at the high-profile position with BitMEX – which is recognized as one of the biggest crypto trading platforms in the world – the job is not featured on her LinkedIn page, leaving many to speculate that she has left the company after less than one year.

Kwan’s appointment in November 2018 was widely reported across crypto and mainstream news outlets. 

She brought a wealth of experience to the organization, having previously worked at the Hong Kong Securities and Futures Commission (SFC) as a director of enforcement and as a director of market supervision.

With eight years of experience at the agency she was chosen because of her ability to build bridges and expand the reach and appeal of the platform.

CFTC investigation

Mainstream media has reported, from an unnamed source, that Seychelles-based BitMEX is already under investigation from United States authorities for allegedly allowing US residents to use the platform, despite the fact BitMEX is not registered in the US.

The report earlier this year said:

“The U.S. Commodity Futures Trading Commission is investigating crypto exchange BitMEX, according to people familiar with the matter … The months-long CFTC probe is focused on whether BitMEX broke rules by allowing Americans to trade on the platform, which isn’t registered with the agency, said one of the people who asked not to be named discussing the investigation, which hasn’t been made public. 

“The regulator considers virtual currencies like Bitcoin to be commodities, and it has jurisdiction over futures and other derivatives based on them.”

The report continues:

“BitMEX Chief Executive Officer Arthur Hayes said in an interview in January that BitMEX removes anyone who flouted company rules barring U.S. residents and nationals. However, it is possible clients masked their location by using virtual private networks to assign their computer an Internet protocol address from a BitMEX permitted country, tricking filters put in place, Hayes said.”

In the UK, the Advertising Standards Authority (ASA) upheld a complaint made about a newspaper advert from BitMEX published on the 10th anniversary of the creation of bitcoin. They claimed it misled potential investors about returns from cryptocurrency trading.