- BitMEX has been fined $100 million for failing to implement adequate anti-money laundering measures
- The exchange pleaded guilty to the charges last year
- The company’s founders have previously faced legal actions and penalties related to these violations
Cryptocurrency exchange BitMEX has been told to forfeit $100 million after admitting to breaching the Bank Secrecy Act by neglecting to establish sufficient anti-money laundering protocols. The charges date back to an investigation by the Commodity Futures Trading Commission (CFTC) in 2020, which led to the exchange pleading guilty last year. This development follows earlier legal actions against the company’s founders for similar offenses.
Five-year Old Charges Return to Haunt BitMEX
Founded in 2014, BitMEX quickly became a prominent player in the cryptocurrency derivatives market. However, between 2015 and 2020, the exchange operated without implementing essential AML and know-your-customer (KYC) procedures, as mandated by US law. This oversight effectively turned the platform into a conduit for money laundering and sanctions evasion.
In 2020, the CFTC and the U.S. Department of Justice charged BitMEX and its co-founders—Arthur Hayes, Benjamin Delo, and Samuel Reed—with violating the BSA. The founders were accused of willfully failing to implement AML programs, operating an unregistered trading platform, and other related offenses.
By 2022, all three co-founders had pleaded guilty to violating the BSA. Each agreed to pay a $10 million fine and received probation sentences. Arthur Hayes, for instance, was sentenced to two years’ probation with six months of home confinement. BitMEX pleaded guilty to the violations last year.
BitMEX Rings the Changes
In response to these legal challenges, BitMEX has stated that it has taken significant steps to enhance its compliance programs. The company emphasized that the recent guilty plea pertains to past operations and that it has since improved its AML and KYC procedures to meet regulatory standards.
US Attorney Damian Williams remarked, “Today’s guilty plea indicates again the need for cryptocurrency companies to comply with U.S. law if they take advantage of the U.S. market.”
