• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Sensei Inu Logo Sensei Inu Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino
Breaking News: BREAKING: Three Arrows Capital Co-Founder Receives 4-Month Jail Sentence In Singapore
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino
Bitcoinist.com
No Result
View All Result
Breaking News: BREAKING: Three Arrows Capital Co-Founder Receives 4-Month Jail Sentence In Singapore
BitMEX founders

BitMEX Founders Plead Guilty To Violating Bank Secrecy Law

Christian Encila by Christian Encila
2 years ago
in Crypto News, Trading
0

The US Department of Justice said on Thursday that BitMEX founders had entered a guilty plea to charges of violating the Bank Secrecy Act by failing to set in place an anti-money laundering system.

Benjamin Delo and Arthur Hayes, two of the co-founders, have agreed to each pay a $10 million fine as part of their plea agreement.

They might face up to five years in jail, though their exact sentences will be determined later by a federal judge, according to the Manhattan U.S. Attorney’s Office.

The accusations were brought as part of a US clampdown on the Seychelles-based cryptocurrency exchange. It was one of the largest bitcoin derivatives trading platforms in the world at the time.

BitMEX Founders Knew What’s Going On

Hayes and Delo consented to a six- to 12-month prison sentence each under the terms of the plea deal.

Damian Williams, the US Attorney for the Southern District of New York, disclosed in a statement that the defendants permitted BitMEX to operate “in the shadows of the financial markets.”

Total crypto market cap at $1.693 trillion in the daily chart | Source: TradingView.com

Related Article | Bitcoin Price Plummets As Russia-Ukraine Tensions Escalate

According to the DOJ, the BitMEX founders also enabled customers from Iran to utilize the platform, despite the fact that Iran is a sanctioned country.

Hayes resigned as BitMEX’s chief executive officer immediately after the lawsuit was filed.

The two men “created a business with the express purpose of violating those responsibilities” and “willfully failed” to adopt and maintain fundamental anti-money laundering practices, Willliams stated.

Prosecutors claim that the company’s leadership ignored reports that BitMEX was being used to launder illegal proceeds and shift money in violation of US sanctions.

Out Of Reach Of Regulators

According to authorities, the two publicly divulged that they were keeping the exchange’s activities out of the United States — and so out of reach of the country’s very strict banking regulations — but had full knowledge that US consumers were using BitMEX.

Related Article | Ukraine Crypto: Lawmakers Legalize Cryptocurrencies As Fears Of Russian Attack Grow

Hayes accepts responsibility for his conduct, according to a representative, and looks forward to the day when he can “put this matter behind him.”

A representative for Delo said the platform’s “lack of an adequate consumer identification procedure” is regrettable.

Hayes and Delo were charged in October 2020, along with co-founder Samuel Reed and employee Gregory Dwyer, with failing to implement a federally mandated “know your customer” (KYC) standard.

The BitMEX founders agreed to pay up to $100 million in August 2021 to settle separate allegations brought by the Financial Crimes Enforcement Network and the CFTC for illegally taking consumer funds to trade bitcoin and other crypto while the platform was not registered to do so.

Featured image from FX Empire, chart from TradingView.com
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Christian Encila

Christian Encila

Related Posts

Crypto

Crypto Scam Alert: CFTC Launches Lawsuit Against Mosaic Exchange

2 hours ago
Crypto Collision- Coinbase's CEO Brian Armstrong Challenges Chase UK's Sudden Ban

Crypto Collision: Coinbase’s CEO Brian Armstrong Challenges Chase UK’s Sudden Ban

4 hours ago
crypto

Crypto Sustainability: EU Commits Over $800,000 To Forge Sustainable Asset Standards

12 hours ago
XRP John Deaton

Pro-XRP Attorney Deaton Receives Prestigious Award For Crypto Efforts

13 hours ago
Binance's Russian Exodus

Binance’s Russian Exodus: Did Key Players Shift To The New Kid On The Block, CommEX?

1 day ago
Microsoft Nintendo ETH ETHUSDT Ethereum NFTs

Microsoft, Sony, Nintendo Jump On Web3 Space, Who Else Has Joined Them? New Data Shows

1 day ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Play Finance

Top Casinos

Trust Dice
Trust Dice
Punt Casino
Punt Casino
mBit
mBit

Press Releases

  • Meta Force and Lado Okhotnikov Presented the Results of...

    7 hours ago
  • Bitcoin (BTC) and Litecoin (LTC) Ascending – Is it a...

    10 hours ago
  • Ethereum (ETH) and Ripple (XRP) Facing Key Levels –...

    11 hours ago
  • While Stellar And Avalanche Falter, Bitcoin Spark Heading...

    14 hours ago
  • Crypto Sports Betting Just Got A Lot Better –...

    14 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino

© 2023 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.