The Commodity Futures Trading Commission (CFTC) announced today that the three founders of BitMEX are illegal. cryptocurrency fined a total of $30 million for operating a derivatives platform and violating money laundering rules.
Cryptocurrency Exchange BitMEX Founders Will Pay 10 Million Dollars Each
According to the US District Court for the Southern District of New York, BitMEX founders Arthur Hayes, Benjamin Delo and Samuel Reed were ordered to pay $10 million each for charges brought by the CFTC of conducting illegal business with their US customers.
The final decision is in the case of the Ministry of Justice in February. bitcoin and came after the founders of the cryptocurrency exchange admitted that they had violated the Bank Secrecy Act. The three names pleaded guilty to operating a crypto spot and derivatives trading platform without necessary anti-money laundering measures in this case.
However, according to the CFTC, sentencing in this case is expected in the coming weeks.
In 2020, the U.S. derivatives markets controller, the CFTC, sanctioned the company and its founders, alleging that it “illegally accepts orders and funds from U.S. customers for derivatives trading of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.” The penalties announced today actually originate from this step of the CFTC. The company had previously agreed to pay $100 million to the Financial Crimes Enforcement Network (FinCEN).
The CFTC said in a statement that the founders of the cryptocurrency exchange “failed to implement the necessary controls to prevent and detect the illegal activities of BitMEX.”
Company spokesperson Taylor Bossung said that BitMEX is aware of the developments but will not comment on legal issues that the company is not directly involved in.
*Not investment advice.