Arthur Hayes, co-founder of Bitmex, avoids prison for violating the US Bank Secrecy Act
Here’s a concise crypto market analysis on how BitMex co-founder was found guilty of Crypto Mining, using Blockchain as a Service, and decentralized finance.
Attorney in New York – Mr. Damian Williams announced the detention of Arthur Williams – co-founder of BitMex, for violating the Bank Secrecy Act. He was also allegedly involved in money laundering at his own company. He had been dealing in cryptocurrency exchanges in Bitcoin, Bitcoin Cash, Cardano, Ethereum, Binance Coin, Dogecoin, Altcoins, NFT – Non Fungible Tokens, Polkadot, stellar, Stablecoins, Crypto Airdrops, and Bitcoin Merchantile Exchange “BitMex” there.
As Arthur built his billion-dollar company, he failed to comply with US Secrecy and crime prevention laws. He was intentionally involved in failing every rule and implementing basic money laundering policies, which allowed BitMex to operate as a platform in lieu of financial markets.
Bitmex failed to abide by the AML regulation, and identify its customers for the KYC rule. This caused it to fail. As per Cryptocurrency Regulation News, in different countries, following Hayes was notified in May 2018 about this possibility. He along with his associates still failed to file a suspicious activity report thereafter and did not implement Know your customer and anti-money laundering programs.
US regulatory developments made it a legal obligation for BitMex to comply forth with KYC and AML if it had to operate in the United States U.S. This prevented its customers from trading in the US. But Hayes still derived profits from BitMex. They aggressively advertised that No KYC or AML is required to trade via Bitmex. Also, they did not make it compulsory to make use of real names or any advanced verification is mandatory to be able to trade via BitMex.
Money Laundering Investigation Squad and the Federal Bureau of Investigation’s New York made Hayes, 36, pay a fine of $10 million which represents his gain from the offense.