Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Cryptocurrencies

BitMEX pleads guilty over bank secrecy violation

Source Fxstreet

BitMEX pleaded guilty to violating the Bank Secrecy Act on Wednesday.
BitMEX had been operating in the US without establishing adequate anti-money laundering programs.
Founders may face up to five years imprisonment following the guilty plea.

BitMEX pleaded guilty to violating the Bank Secrecy Act on Wednesday after failing to implement anti-money laundering (AML) and Know Your Customer (KYC) programs on its platform.

BitMEX co-founders could face jail time after pleading guilty to charges

Damian Williams, the US Attorney for the Southern District of New York, disclosed on Wednesday that crypto exchange BitMEX pleaded guilty to flouting the Bank Secrecy Act.

The exchange refused to implement robust AML protection and KYC verification processes on its platform. This made it vulnerable to "large-scale money laundering and sanctions evasion schemes, posing a serious threat to the integrity of the financial system."

The report states that BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed willfully failed to comply with the law, knowing that anti-money laundering programs are a requirement for crypto companies.

"The company and its executives knew that because BITMEX operated in the United States, including by serving US customers, it was required to implement an AML program that included a "know your customer" ("KYC") component but chose to flout those requirements, requiring only that customers provide an email address to use BITMEX's services," the report stated.

The company also allegedly lied to a bank regarding the purpose of a subsidiary. This enabled it to move millions of dollars through the US financial system.

BitMEX's clash with US courts dates back to 2020 when the Commodity Futures Trading Commission (CFTC) charged the exchange with violating regulations regarding AML. The case resulted in BitMEX paying a fine of $100 million.

The US Attorney's Office's Illicit Finance and Money Laundering Unit will handle the prosecution, and the company's co-founders may face a five-year prison sentence.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Ethereum Drops Below $2,000 After Plunging Over 20% in a Month as Odds of $1,500 Retest Surge Ethereum Plunges Over 20% in a Month, Risking a Retest of $1,500 After Losing the $2,000 Defense Line.On November 13, Ethereum (ETH) plunged more than 5%, officially falling below the key

Author TradingKey

11 hours ago

Ethereum Plunges Over 20% in a Month, Risking a Retest of $1,500 After Losing the $2,000 Defense Line.On November 13, Ethereum (ETH) plunged more than 5%, officially falling below the key

Gold Price Forecast: Gold Tumbles Below $3,900 as Trump Says No Need for Iran Deal; Can October PPI Spur a Rebound? As of the Asian session on Friday (November 13), gold prices (XAUUSD) rebounded intraday following Thursday's sharp decline, trading near $3,910. Previously, gold tumbled 2.76% on Thursda

Author TradingKey

13 hours ago

As of the Asian session on Friday (November 13), gold prices (XAUUSD) rebounded intraday following Thursday's sharp decline, trading near $3,910. Previously, gold tumbled 2.76% on Thursda

Brent rose 3.3% and US crude stocks built 4.66 million barrels in the same week Brent January settled at 95.82, up 3.3%, and WTI at 88.74, up 2.55%, after the US signalled it would not pursue a deal with Iran and attacks on Gulf shipping continued. In the same week, EIA data showed US crude inventories rising 4.657 million barrels against expectations of a 1.1 million draw, with gasoline up another 1.799 million. OPEC output also rebounded 1.96 million barrels a day to 27.16 million in October, led by Saudi Arabia at 10.56 million. This piece separates the geopolitical premium from the physical balance and lays out where each side of the trade is anchored.

Author Irene Q.

17 hours ago

Brent January settled at 95.82, up 3.3%, and WTI at 88.74, up 2.55%, after the US signalled it would not pursue a deal with Iran and attacks on Gulf shipping continued. In the same week, EIA data showed US crude inventories rising 4.657 million barrels against expectations of a 1.1 million draw, with gasoline up another 1.799 million. OPEC output also rebounded 1.96 million barrels a day to 27.16 million in October, led by Saudi Arabia at 10.56 million. This piece separates the geopolitical premium from the physical balance and lays out where each side of the trade is anchored.

Gold hit a one-year low while central banks bought 321 tonnes — the sellers were never the ones you think Spot gold closed at 3,876 on Thursday, down 2.8% and its lowest close in more than a year, with an intraday low near 3,852. The dollar is at a 19-month high of 103.21 and the 10-year yield is at 5.10%, so the price move is easy to explain. What is harder to explain is who sold: central banks bought 321 tonnes in Q3, the PBoC added for a 24th straight month, ETF holdings are near a record 4,256 tonnes, and roughly 95% of the futures selling came from non-reportable and sovereign-type accounts rather than hedge funds. This piece separates the two books that have to balance.

Author Irene Q.

17 hours ago

Spot gold closed at 3,876 on Thursday, down 2.8% and its lowest close in more than a year, with an intraday low near 3,852. The dollar is at a 19-month high of 103.21 and the 10-year yield is at 5.10%, so the price move is easy to explain. What is harder to explain is who sold: central banks bought 321 tonnes in Q3, the PBoC added for a 24th straight month, ETF holdings are near a record 4,256 tonnes, and roughly 95% of the futures selling came from non-reportable and sovereign-type accounts rather than hedge funds. This piece separates the two books that have to balance.

Today’s Market Recap: Nvidia Drops Over 4% After Jensen Huang Resigns, AMD and Broadcom Both Rise Over 5% On November 12, the three major U.S. stock indices closed slightly lower. Nvidia announced that Jensen Huang had stepped down immediately as CEO and director, draggi

Author TradingKey

18 hours ago

On November 12, the three major U.S. stock indices closed slightly lower. Nvidia announced that Jensen Huang had stepped down immediately as CEO and director, draggi

Popular Symbols