Home » BitMEX founders plead guilty in the US and agreed to pay $10M each

BitMEX founders plead guilty in the US and agreed to pay $10M each

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Arthur Hayes & Benjamin Delo are two of the founding members of cryptocurrency trading offshore. BitMEXOn Thursday, they pleaded guilty to violating the United States Bank Secrecy Act for failing to implement anti-money laundering provisions.

Under the terms of their plea deal, both of them agreed to each pay $10,000,000 as a criminal penalty. The maximum sentence for each of them is 5 years. However, the judge will determine the sentence.

Be deliberate

BitMEX was launched in 2014 and has gained popularity due to its 100x offer.  leverage  on cryptocurrency derivative instruments. Officially, the exchange pulled its US services around September 2015. However, the US prosecutors claimed that Hays as well as Delo knew this was an impropriety. US clients were not able to trade because of the controls that the exchange had put in place.

BitMEX, as per the charges, knew of US-based trading activities and had been making substantial profits. Influencers were used to lure US customers.  marketing  You can become an affiliate of their program.

Delo was even accused of changing BitMEX’s internal tracking information to show some popular customers’ countries other than the US.

Hayes was with Delo at that time held top executive positionsThe exchange. They were also accused of criminal acts and forced the exchange’s top management to change.

“Arthur Hayes and Benjamin Delo built a company designed to flout [crime and corruption preventing] obligations; they willfully failed to implement and maintain even basic anti-money laundering policies,” said US Attorney Damian Williams. “They allowed BitMEX to operate as a platform in the shadows of the financial markets.”

The US prosecutors indicted Hayes, Delo, Samuel Reed and Gregory Dwyer. Separate civil charges were also filed against the exchange. paying $100 million.

Arthur Hayes & Benjamin Delo are two of the founding members of cryptocurrency trading offshore. BitMEXThey pleaded guilty Thursday to the violations of the United States Bank Secrecy Act, which failed to create anti-money laundering clauses.

Under the terms of their plea deal, both of them agreed to each pay $10,000,000 as a criminal penalty. Both of them are looking at maximum 5 year sentences, though the judge will make the final decision on sentencing.

Be deliberate

BitMEX was launched in 2014 and has gained popularity due to its 100x offer.  leverage  on cryptocurrency derivative instruments. Officially, the exchange pulled its US services around September 2015. However, the US prosecutors claimed that Hays as well as Delo knew this was an impropriety. US clients were not able to trade because of the controls that the exchange had put in place.

BitMEX, as per the charges, knew of US-based trading activities and had been making substantial profits. Influencers were used to lure US customers.  marketing  You can become an affiliate of their program.

Delo was even accused of changing BitMEX’s internal tracking information to show some popular customers’ countries other than the US.

Hayes was with Delo at that time held top executive positionsThe exchange. They were also accused of criminal acts and forced the exchange’s top management to change.

“Arthur Hayes and Benjamin Delo built a company designed to flout [crime and corruption preventing] obligations; they willfully failed to implement and maintain even basic anti-money laundering policies,” said US Attorney Damian Williams. “They allowed BitMEX to operate as a platform in the shadows of the financial markets.”

The US prosecutors indicted Hayes, Delo, Samuel Reed and Gregory Dwyer. Separate civil charges were also filed against the exchange. paying $100 million.

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