The BitMEX crypto derivatives platform, which has been on the business end of numerous legal cases, is set to face charges for violating US anti money laundering laws on March 28, 2022. As reported earlier, BitMEX and its founders had come under the scanner of authorities last year, which roiled the markets. Co-founder and ex-CEO Arthur Hayes, co-founder Benjamin Delo, and CTO Samuel Reed are all facing charges. Gregory Dwyer, BitMEX’s head of business development, is also facing charges but has not appeared yet.
BitMEX officials are accused of violating the AML laws.
BitMEX officials are accused of violating the Bank Secrecy Act, know-your-customer, and anti-money laundering laws by the Department of Justice and the Commodity Futures Trading Commission (CFTC). Hayes recently surrendered to authorities in early April 2021. BitMEX is registered in Seychelles, and its former CEO Hayes allegedly said it was easier to bribe authorities. Hayes stepped down as CEO in October 2020. BitMEX is also involved in other lawsuits. One such case was filed by traders Yaroslav Kolchin and Vitaly Dubinin, who claimed that it engaged in market manipulation and unregistered trading.
BitMEX had updated its KYC demands.
Until the charges were filed against the crypto derivatives exchange, BitMEX was one of the world’s most popular derivatives platforms. However, after being targetted by authorities, users fled the platform, and it has since become a much smaller player in the space. To satisfy some of the authorities, the crypto exchange had updated its KYC demands earlier. The Department of Justice claimed that the crypto exchange did not implement AML procedures for U.S. traders, which is one of the primary charges against it. With all of these controversies hanging above it, the exchange has seen a drop in usage and activity. If convicted, BitMEX executives could receive up to five years in prison and $250,000 in fines.