Embattled BitMEX Co-Founders to Pay $30M in Civil Fine

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The United States District Court for the Southern District of New York (SDNY) has pronounced a combined Civil monetary good of $30 cardinal for the 3 embattled BitMEX speech co-founders indicted for violating the US Bank Secrecy Act. 

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The co-founders see Arthur Hayes who served arsenic the Chief Executive Officer until the investigations started, Benjamin Peter Delo, and Samuel Reed.

As announced by Commissioner Johnson of the Commodity Futures Trading Commission (CFTC), the good was pronounced successful the signifier of a Consent Order, and each of these founders volition beryllium required to wage $10 cardinal each. The CFTC picked up the enforcement actions against the trio for moving the BitMEX Exchange successful the United States without receiving the due licenses.

Hayes and his colleagues were accused of failing to implement the applicable Anti-Money Laundering (AML) measures arsenic good arsenic Know Your Customer (KYC) procedures. 

Speaking with respect to the Consent Order, Commissioner Johnson said “the ngo of the Commodity Futures Trading Commission is to beforehand the integrity, resilience, and vibrancy of the U.S. derivatives markets done dependable regulation.” He noted that the committee has the powers of the US Congress to transportation retired its ngo arsenic the legislature “authorizes the CFTC to beforehand liable innovation and just contention successful our markets.” 

He added;

“This lawsuit highlights the value of cryptocurrency derivatives platforms operating successful the United States, peculiarly those permitting U.S. lawsuit participation; specified platforms indispensable comply with the Commodity Exchange Act and the Commission’s regulations. To stay competitory successful planetary fiscal markets, our derivatives markets indispensable proceed to innovate, peculiarly successful emerging integer plus markets. It is imperative, however, to equilibrium liable innovation with halfway principles, including user protection, transparency, and fairness.”


BitMEX got freed from the regulator backmost successful August past twelvemonth erstwhile it paid $100 cardinal for related charges. While the CFTC is stern with respect to its enforcement actions, it besides claims it is successful enactment of a afloat innovative thrust successful the crypto ecosystem.

Image source: Shutterstock

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