Hold onto your hats because BitMEX is back in the spotlight, and it's a wild ride! The renowned crypto exchange, along with its parent company HDR Global Trading Limited, has been slapped with a whopping $100 million fine by the United States Department of Justice (DOJ) for skirting around those pesky Bank Secrecy Act (BSA) rules.
The court had some stern words for BitMEX, pointing out that they didn’t bother with proper anti-money laundering (AML) or know-your-customer (KYC) protocols. It's the kind of oversight that lands you in hot water—two years of probation, to be precise. U.S. Attorney Matthew Podolsky made it clear: messing with AML and KYC rules is not worth it!
BitMEX's legal drama has been unfolding like a soap opera. After pleading guilty to BSA violations last July, they thought they’d settled matters with a $110 million payment. But the court had other ideas, tacking on additional financial penalties. BitMEX wasn’t thrilled but took solace in it being less than the $420 million the DOJ originally wanted.
Calling the charges “old news,” BitMEX is eager to put this saga behind them, promising to focus on innovation and service quality. They’re stepping up their compliance game, rolling out top-notch user verification and robust AML and KYC systems.
Founded in 2014 by Arthur Hayes, Benjamin Delo, and Samuel Reed, with Gregory Dwyer joining in 2015, BitMEX knowingly flouted U.S. laws, allowing traders easy access without proper checks. Despite knowing the rules, the execs bypassed them, letting U.S. traders slip through with minimal fuss. Talk about living on the edge!
The court documents revealed some eyebrow-raising details, like how the exchange misled a bank to shuffle millions through the system, putting profits over the law.
This judgment ties into a criminal case following separate settlements, with the top execs already having pleaded guilty and faced fines. BitMEX had earlier agreed to a $100 million settlement with the Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN). Arthur Hayes, once the face of BitMEX, stepped down as CEO in 2020 and later surrendered to U.S. authorities.
It’s a lesson in crypto caution—play by the rules, or pay the price!
