BitMEX Anticipates No Further Fines for Previous AML Violation in the US

BitMEX has addressed the DOJ’s charge under the Bank Secrecy Act (BSA) as a past issue, emphasizing the improvements in compliance and the penalties paid by the founders.

Overview

• Cryptocurrency derivatives exchange BitMEX has dismissed its violation of the Bank Secrecy Act (BSA) as old news from 2020.
• BitMEX founders, Arthur Hayes and Benjamin Delo, had admitted to the violation and paid fines in 2022.
• The exchange anticipates no further fines from the Department of Justice (DOJ).

On July 10, US Attorney Damian Williams announced BitMEX’s admission to offering crypto trading services without a meaningful Anti-Money Laundering (AML) program.

In response to the BSA charge, BitMEX mentioned that its founders had pleaded guilty to the violation and settled fines in 2022.

The founders had admitted to wilfully failing to establish, implement, and maintain an Anti-Money Laundering program at their crypto derivatives exchange. This led to the implementation of verification systems to prevent US citizens from using BitMEX.

BitMEX Charges

Both Hayes and Delo agreed to pay $10 million in criminal fines each for BitMEX’s BSA violations. As a result, the exchange does not anticipate further fines from the DOJ.

“We have accepted the BSA charge, will seek an expedited sentencing hearing, and argue that no further fine should be imposed, given the substantial amounts already paid by our founders under the BSA charges brought against them, and under our no admission/no denial settlements with the CFTC and FinCEN in 2021.”

BitMEX has ensured that its Know Your Customer and AML programs have been audited independently, emphasizing that the charge has no impact on its business operations.

AML Violation Penalties

Delo received a sentence of 30 months probation for the BSA violation, while Hayes was sentenced to two years probation and six months of home detention.

Prosecutors argued that Delo should serve a prison sentence similar to Hayes, who voluntarily surrendered to US authorities in Hawaii after the charges were first levied.

“Mr. Hayes voluntarily appeared in court and looks forward to fighting these unwarranted charges.”

Pleading guilty to facilitating money laundering in the US can result in significant penalties, including possible imprisonment for up to five years.