BitMEX co-founders Arthur Hayes and Benjamin Delo pleaded guilty to using the platform for money laundering and agreed to pay a $10 million fine.
In October 2020, the U.S. Commodity Futures Trading Commission (CFTC) accused BitMEX CEO Arthur Hayes, exchange co-founder Benjamin Delo, and other marketplace executives of illegally doing business in the U.S., as well as violating KYC rules. and AML.
According to a Justice Department statement, BitMEX illegally served US customers between September 2015 and September 2020. The exchange also served users from Iran, despite the sanctions of the Office of Foreign Assets Control (OFAC) in relation to this country.
Recently, the US Attorney’s Office for the Southern District of New York reported that Hayes and Delo pleaded guilty to willful violation of the Bank Secrecy Act and non-compliance with anti-money laundering regulations. They face up to five years in prison, but local media reports that Hayes and Delo could be sentenced to between 6 and 12 months. Each of them agreed to pay a fine of $10 million for receiving material benefits as a result of the offense.
Hayes and Delo will also have the opportunity to seek a reduced sentence at a hearing when they appear before US District Judge John G. Koeltl. The trial of former BitMEX executives is expected to take place in March this year. The other defendants – exchange CTO Samuel Reed and head of business development Gregory Dwyer – are due to appear in court later this year.
“Now the exchanges have become one of the key players that must ensure the integrity, transparency and security of the US markets. However, instead, Hayes and Delo created a company that ignored its commitment to root out crime and corruption. The Department of Justice will continue to prosecute violators who use cryptocurrencies to launder money,” said U.S. Attorney Damian Williams.
Recall that in August last year, BitMEX announced the settlement of claims by the CFTC and the US Financial Crime Enforcement Network (FinCEN), paying a $100 million refund.
