Originally published on: July 11, 2024
Cryptocurrency exchange BitMEX is moving forward from a violation of the Bank Secrecy Act (BSA) in the United States that it considers “old news” dating back to 2020. The company is seeking an expedited sentencing hearing and is confident that no additional charges will be brought against them.
US Attorney Damian Williams announced on July 10 that BitMEX had admitted to offering cryptocurrency trading services without a robust Anti-Money Laundering (AML) program in place.
BitMEX has stated that its founders, Arthur Hayes and Benjamin Delo, have already pleaded guilty to the violation and paid fines in 2022.
The violation involved the failure to establish, implement, and maintain an AML program at the crypto derivatives exchange. As a result, BitMEX has implemented verification systems to prevent US citizens from accessing their platform.
Hayes and Delo agreed to pay $10 million each in criminal fines for the BSA violations, and the exchange does not expect any further penalties from the US Department of Justice (DOJ).
BitMEX has assured its users that its Know Your Customer and AML programs have undergone independent audits and that the charge will not impact its operational activities.
In recent developments, Delo received a 30-month probation sentence for the BSA violation, while Hayes was sentenced to two years of probation and six months of home detention.
Despite arguments from prosecutors, Hayes and Delo have faced legal consequences for the violation. However, BitMEX remains focused on its business operations and compliance efforts.
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