- One of the world’s previously largest crypto exchanges, the Bitcoin Mercantile Exchange (BitMEX), is now facing flak.
- The CEO and co-founder of the company, Arthur Hayes, had been implicated with legal proceedings in the US in 2020.
- Primary charges include violating the Bank Secrecy Act and the conspiracy to engage in activities against the Act.
One of the world’s largest crypto exchanges had its fortunes turned, quite literally, after US law enforcement authorities decided to initiate proceedings against the firm for acting against the interests of US citizens.
Arthur Hayes decides to surrender
Trouble began brewing for the firm when the Commodity Futures Trading Commission (CFTC) charged the owners for continually running an unregistered crypto derivatives trading platform on United States soil. Even though the company has its headquarters in Seychelles, it has high-profile branches in New York and Hong Kong. According to the CFTC’s report, BitMEX had received about $1 billion in fees while conducting Bitcoin transactions to the tune of about $11 billion. Even though a significant share of its business was from the US, the firm refused to comply with its regulatory protocols. Later, the Department of Justice (DOJ) slapped criminal charges with the firm’s founders Arthur Hayes, Ben Delo, and Head of Business Development Gregory Dwyer with charges of conspiracy to and subsequent violation of the Bank Secrecy Act (BSA) and non-compliance with anti-money laundering protocols.
Jessica and Hayes’ team
Four months later, assistant US attorney Jessica Greenwood reported to a federal judge that her team and Mr Hayes’ team had been working together, and he had informed about his decision to surrender according to his own volition. Moreover, the federal attorney’s legal team had also been in touch with Ben Delo and its first employee Gregory Dwyer.
Will Arthur Hayes be allowed to travel?
According to his proposed bail package terms, Mr Hayes is currently residing in Singapore; he would be required to travel to Hawaii for virtual proceedings. If the case proceeds to trial, he would have to make himself available in New York. He would be permitted to travel and reside outside of the US for all other purposes. Similarly, Mr Delo is also willing to surrender in the US as and when travel restrictions to and from the United Kingdom due to the pandemic are lifted. Extradition proceedings have been initiated against Mr Dwyer, currently in Bermuda. Mr. Dwyer has every intention to defend himself in court against the charges. To that end, his attorneys are working with the government to arrange for his appearance.
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