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

October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changed Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Author Irene Q.

Sep 23, Wed

Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

【Daily Brief】30-year Treasury tops 5.59%, S&P 500 slips to 7,670 and gold holds $4,180 — PCE lands tonight The 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.

Author Suzie

Sep 30, Wed

The 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.

Gold falls to near $4,150 as higher Treasury yields, oil prices outweigh softer PCE inflation Gold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday.

Author FXStreet

Oct 01, Thu

Gold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday.

WTI Price Forecast: Dips to $91.50 as Middle East jitters limit losses West Texas Intermediate (WTI) – the benchmark US Crude Oil price – attracts some sellers during the Asian session on Friday, snapping a two-day winning streak and stalling the previous day's recovery from the vicinity of a nearly four-week low.

Author FXStreet

Oct 02, Fri

West Texas Intermediate (WTI) – the benchmark US Crude Oil price – attracts some sellers during the Asian session on Friday, snapping a two-day winning streak and stalling the previous day's recovery from the vicinity of a nearly four-week low.

Euro softens below 1.1250 on France’s fiscal risk The EUR/USD pair loses momentum to around 1.1245 during the early Asian session on Monday. The Euro (EUR) weakens against the US Dollar (USD) amid fears over France's shaky fiscal trajectory. The US ISM Services Purchasing Managers Index (PMI) report is due later on Monday.

Author FXStreet

6 hours ago

The EUR/USD pair loses momentum to around 1.1245 during the early Asian session on Monday. The Euro (EUR) weakens against the US Dollar (USD) amid fears over France's shaky fiscal trajectory. The US ISM Services Purchasing Managers Index (PMI) report is due later on Monday.

Popular Symbols