A United States District Approximate has dismissed amended racketeering allegations brought past traders against the parent company of derivatives exchange BitMEX, HDR Global trading, noting that many of the plaintiff'due south accusations had been copied and pasted from a unlike lawsuit filed against the platform.

On Sept. 7, Approximate William Orrick dismissed the plaintiff's claims that BitMEX had engaged in market manipulation, fraudulent inducement, and violated both the Racketeer Influenced and Decadent Arrangement Act (RICO) and Commodity Substitution Acts.

Co-ordinate to Law360, Estimate Orrick ended the filings were "conclusory" and "prolix" in nature, stating:

"The size and prolix nature [...] alone are grounds for dismissal. I have too searched for a plausible claim and cannot find 1."

The amended complaint was brought forward past a grouping 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 — afterwards Estimate Orrick rejected an earlier version in March on the grounds information technology was excessively wordy.

Despite the courtroom explicitly warning that the previous 237-page, 600 paragraph complaint had been besides long, the plaintiffs' amended complaint was 378 pages long and featured more 1,000 paragraphs.

The judge also ruled the amended complaint included accusations of marketplace manipulation that had been copied and pasted from a dissimilar lawsuit filed against BitMEX in New York.

"I will non consider those copied allegations, for which the Messieh courtroom volition determine plausibility," Approximate Orrick said. "Plaintiffs' other allegations are insufficient for the same reasons identified in my previous order."

Related: BREAKING: BitMEX will pay $100M in penalties to FinCEN, CFTC

The plaintiffs are not permitted to bring the case over again, with Orrick shooting down their asking for further amendments. Pavel Pogodin, legal representation for the plaintiffs, rejected the estimate's claim that their amended complaint featured copied text, telling Law360: "Gauge Orrick did non cite a single case to support his assertions regarding the copied material."

Pogodin added that individual traders who dropped the complaint without prejudice earlier this month plan to again bring the charges frontward, next fourth dimension in a California state courtroom.

In July, Judge Orrick scolded the plaintiffs' lawyer after they claimed the guess did not properly understand cryptocurrency and offered to requite Orrick lessons on the "basics" of digital assets. Approximate Orrick rejected the offer, stating: "focus on the job at hand — disarming me that they take stated a plausible claim."