Crypto exchange BitMEX co-founder Ben Delo faces a class-action lawsuit initiated by exchange users following a ruling by a United States federal judge, who determined Delo's pivotal role in an alleged price manipulation scheme.

Delo, a British national, attempted to dismiss the suit in May of last year, arguing that U.S. courts lacked jurisdiction over him. However, New York District Court Judge Andrew Carter rejected this argument in an order dated April 3 and made public on April 8.

Judge Carter's order emphasized that the plaintiffs had presented sufficient evidence to demonstrate that Delo had deliberately availed himself of the benefits offered by the United States legal system.

According to the order, Delo played a central role in the alleged manipulation efforts, being instrumental in the conception and design of a liquidation system that allowed BitMEX to profit from the manipulation.

The lawsuit, filed in April 2020 by a group of BitMEX users against BitMEX and its co-founders Delo, Arthur Hayes, and Samuel Reed, alleged the existence of a trading desk with "God Access" to BitMEX customer accounts.

It was claimed that the trio utilized customer information to orchestrate market moves that would result in the liquidation of the highest number of users, thereby generating profits for the exchange.

BitMEX disclosed the existence of the desk in April 2018 under pressure from an independent analyst, claiming it had a neutral market-making role. However, the lawsuit contended that BitMEX continued trading against its customers using burner accounts.

In addition to his involvement in designing BitMEX's liquidation system, the judge highlighted Delo's significant role at the exchange, which included approving key financial and trading decisions, including the operation of the trading desk.

The order also noted that Delo personally traded on the platform, benefiting from the same undisclosed advantages.

Judge Carter's ruling on April 3 also denied a motion to dismiss from BitMEX and its parent company, HDR Global Trading, finding that the lawsuit had adequately demonstrated that the trading desk operated from BitMEX's office in Manhattan.

Delo, along with Hayes and Reed, pleaded guilty in February to failing to maintain an Anti-Money Laundering program at BitMEX, in violation of the Bank Secrecy Act. Delo received a 30-month probation sentence in June 2022, while Hayes was sentenced to two years probation with six months of home confinement, and Reed to 18 months probation.