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For breaking the US Bank Secrecy Act, Arthur Hayes was sentenced to two years of probation and six months of home confinement.
Arthur Hayes was given a two-year time limit and a six-month house arrest.
Hayes Is guilty
Hayes had previously entered a guilty plea earlier this year.
BitMEX co-founder Arthur Hayes was jailed in New York for violating the US Bank Secrecy Act by failing to follow anti-money laundering standards.
Hayes will serve two years of probation and six months of home confinement after pleading guilty in February. Benjamin Delo and Samuel Reed, Hayes’ co-founders, pled guilty alongside Hayes in February and will be sentenced in June.
BitMEX officials were accused of providing trading services to both domestic and international consumers without following anti-money laundering and Know-Your-Customer standards. As a result, they were charged with money laundering.
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Hayes knew but still did it anyway
Judge John Koeltl, the case’s judge, noted during Hayes’ sentence that his acts were not simply an oversight, but that he recognized the consequences of failing to follow anti-money laundering procedures:
“He knew these measures were necessary to prevent his company from being exploited for money laundering and other illegal objectives… the offense was more than a simple regulatory mistake,” says the prosecutor.
Hayes’ lawyers requested no jail sentence, although prosecutors sought more than a year.
Prosecutors in the case stated that thorough compliance in the crypto industry would be futile if founders and executives “think there are no serious implications for failing to comply with the law.”
Last year, BitMEX was accused of not implementing anti-money laundering (AML) protocols. As part of a deal with the CFTC and FinCEN in August, its parent business was fined $100 million in penalties. Each of Hayes, Delo, and Reed has been penalized $10 million.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
