Cryptocurrency derivatives exchange BitMEX has addressed its violation of the Bank Secrecy Act (BSA) in the United States as “old news” from 2020, emphasizing that it has since made significant compliance improvements. The company announced plans to request an expedited sentencing hearing, anticipating no additional charges.
On July 10, US Attorney Damian Williams announced that BitMEX had admitted to offering crypto trading services without a proper Anti-Money Laundering (AML) program.
In response to the BSA charge, BitMEX stated that its founders, Arthur Hayes and Benjamin Delo, had already pleaded guilty and paid fines in 2022 for the violation.
At that time, BitMEX founders acknowledged that they “willfully failed to establish, implement, and maintain an Anti-Money Laundering program” at their crypto derivatives exchange. The legal outcome led to the implementation of verification systems to prevent US citizens from using BitMEX.
Charges Against BitMEX
Both Hayes and Delo agreed to pay $10 million in criminal fines each for BitMEX’s BSA violations. Consequently, the exchange expects no further fines from the Department of Justice (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 stated.
BitMEX also mentioned that its Know Your Customer (KYC) and AML programs have been independently audited. “Needless to say, this charge has no impact on our business operations,” the company concluded.
Summary Review: BitMEX’s recent statements highlight its efforts to move past its 2020 BSA violation, emphasizing substantial compliance improvements and the resolution of charges against its founders. By addressing the issue and implementing robust KYC and AML programs, BitMEX aims to assure stakeholders of its commitment to regulatory standards. The company anticipates no further fines from the DOJ, underscoring its confidence in the steps taken to rectify past shortcomings. As BitMEX continues to operate, it remains focused on maintaining compliance and ensuring the integrity of its platform.
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