BitMEX founders face fine of $10m each

The founders beleaguered crypto exchange BitMEX have admitted to “willfully failing to establish, implement, and maintain an anti-money laundering program”.

The crypto execs have been in a court battle with the US Department of Justice (DOJ) over regulatory shortfalls.

Arthur Hayes and Benjamin Delo made guilty pleas before a trial scheduled for March this year and have agreed to pay $10m in criminal fines.

BitMEX, which operates out of the Seychelles, has benefited from a fairly lax regulatory environment, and allowed many traders to proceed without the need to conduct AML or KYC checks.

This may have allowed the cryptocurrency exchange to become a preferred choice for many criminals looking to launder money.

The news comes at a time when the world as a whole is seeking to create more meaningful and reliable regulatory frameworks for cryptocurrencies.

Several measures are expected to arrive before long with President Joe Biden expected to issue guidance on cryptocurrencies – and the development of CBDCs – and the European Union planning to create a new AML body which will pay particular attention to cryptocurrencies.

Hayes was also said to have bribed Seychelles local government to facilitate its operations there. Hayes even allegedly bragged that the bribe was the price of a coconut, strange as that seemed.

The DOJ took issue with the other statements that were found not true and that impacted the US in particular.

For one, BitMEX’s claim that the platform was not available to Americans was in fact not true, the department claimed.

It is still not known what this guilty plea would mean for BitMEX as a whole, but chances are no significant impact would be felt on the day-to-day operations of the exchange.

If you are willing to explore crypto in a safe environment, we recommend turning to Bitcasino, 1xBit or FortuneJack instead.


Updated: 02/26/2022 — 00:00