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- The announcement brings to an end a legal chapter that began in the fall of 2020, when Hayes and Delo, as well as co-founder Samuel Reed and BitMEX head of business development Greg Dwyer, were charged with evading US anti-money laundering rules, according to US officials.
- HAYES and DELO each agreed to pay a $10 million criminal fine representing pecuniary benefit obtained from the offence under the terms of their respective plea deals.
- Mr. Hayes accepts responsibility for his conduct and looks forward to the time when he can put this matter behind him, a spokeswoman for Hayes told The Block after the report was published.
Arthur Hayes and Benjamin Delo, co-founders of the crypto derivatives exchange BitMEX, pled guilty to breaching the US Bank Secrecy Act, according to the Department of Justice.
$10 Million Criminal Fine
The announcement brings to an end a legal chapter that began in the fall of 2020, when Hayes and Delo, as well as co-founder Samuel Reed and BitMEX head of business development Greg Dwyer, were charged with evading US anti-money laundering rules, according to US officials. According to the Department of Justice, the two pled guilty to one count each of violating the Bank Secrecy Act, which carries a maximum punishment of five years in prison. According to the Department of Justice,
HAYES and DELO each agreed to pay a $10 million criminal fine representing pecuniary benefit obtained from the offense under the terms of their respective plea deals.
In a statement, US Attorney Damian Williams said, Today’s guilty pleas demonstrate this Office’s sustained commitment to the investigation and prosecution of money laundering in the cryptocurrency business. We are aware of developments in the DOJ lawsuit, a BitMEX spokeswoman told The Block, but will not be commenting on an active legal action to which no BitMEX firm is a party. It’s business as usual; all funds are safe, and the platform’s functionality, including deposits and withdrawals, is unaffected.
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Lack Of A Proper Consumer Identification
Mr. Hayes accepts responsibility for his conduct and looks forward to the time when he can put this matter behind him, a spokeswoman for Hayes told The Block after the report was published. Delo’s representative stated: Ben Delo reached a negotiated settlement with the US Department of Justice over Bank Secrecy Act claims. He regrets the lack of a proper consumer identification procedure at BitMEX, the cryptocurrency derivatives marketplace he co-founded. Ben voluntarily traveled to the United States to face the charges.
All financial advantages from activity in the United States have been remitted to US authorities, thanks to BitMEX’s agreement with the CFTC and FinCEN last year. This effectively puts an end to the situation. Ben is excited to devote more time and energy to his philanthropy, which this arrangement allows him to accomplish, and he appreciates his friends and family’s continuous support. Ben is not going to say anything else at this moment.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
