Thursday, December 7, 2023

BitMEX founders plead guilty to violating Bank Secrecy Act

Arthur Hayes and Benjamin Delo, the founders of BitMEX, have been slapped with a hefty fine of $10 million each after pleading guilty to violating the US Bank Secrecy Act. BitMEX has also now been labeled as a “money-laundering platform”.

Prosecutor Damian Williams told the Court that BitMEX failed to establish, implement and maintain an anti-money laundering program, thus violating the Secrecy Act. He highlighted that while opportunities and advantages of operating in the United States are numerous, businesses help by driving out corruption and crime.

Williams alleged that Arthur Hayes and Benjamin Delo established BitMEX to flout these obligations. The platform failed to implement and maintain the basic anti-money laundering policies. The prosecutor pointed out that BitMEX operated as a shady platform in the shadows of the financial markets. Williams said the founders’ guilty plea shows the Office’s continued commitment to the investigation and prosecution of money laundering in the crypto sector.

Hayes and Delo also accepted that BitMEX profited considerably. Moreover, the Court established that the founders targeted US customers through influence marketing. It noted that Hayes often made US television appearances to expose US investors to the platform.

The Seychelles-based crypto trading platform offers derivatives, margin trading up to 100x, and crypto futures. There are also speculations that Hayes bribed the Seychelles local government. Reports say Hayes boasted about this saying that it merely cost him a coconut.

BitMEX fell under scrutiny when it offered services without any know-your-customer (KYC) or AML verification procedures to Americans. The Department of Justice pointed out the platform’s lack of regulatory compliance. It stated that this highlights BitMEX as a money-laundering platform.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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