BitMEX found guilty: exchange is a threat to the financial system

Crypto exchange BitMEX has pleaded guilty to violating a US anti-money laundering law. This writes the U.S. Attorney’s Office for the Southern District of New York yesterday. According to the statement, BitMEX willfully failed to implement an adequate anti-money laundering program.

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Years of violation

“As BitMEX’s founders and a longtime employee admitted in U.S. court in 2022, the company, one of the world’s largest crypto derivatives platforms, operated in the United States from 2015 to 2020 without a robust anti-money laundering (AML) program as required by federal law,” said Damian Williams, U.S. Attorney.

BitMEX has been in serious legal trouble in the US since at least 2022.

In late 2022, prosecutors sought a 12-month suspended prison sentence for Greg Dwyer, BitMEX’s former head of corporate development, after violating U.S. money laundering laws. Earlier that year, Arthur Hayesone of the founders of BitMEX, was sentenced to six months of house arrest after being found guilty of the same offense.

Threat to the financial system

“BitMEX served as a conduit for large-scale money laundering and sanctions evasion,” Williams warned in the statement.

“This poses a serious threat to the integrity of the financial system. BitMEX’s admission further underscores the need for crypto companies to comply with US laws if they wish to operate in the US market.”

Founded in 2014, BitMEX has long done business with US traders and operated through US offices. As a result, the company was required to register with the Commodity Futures Trading Commission and establish a robust anti-money laundering program.

The US crypto exchange now faces a maximum sentence of five years in prison and a fine

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