Trump Pardons BitMEX Founders, Clearing Their Names After Crypto Legal Battles

President Donald Trump issued full pardons to the three co-founders of BitMEX, a prominent cryptocurrency exchange, years after they admitted to breaching U.S. anti-money laundering regulations.

Arthur Hayes, Benjamin Delo, and Samuel Reed, who launched BitMEX in 2014, each pleaded guilty to violations under the Bank Secrecy Act, specifically allowing U.S. customers to trade on the platform without proper identity checks. Authorities had described BitMEX as a hub for illicit financial activities.

In 2022, the trio received probation sentences and collectively paid millions in fines to resolve both criminal and civil charges. Hayes, the former CEO, spent six months under home confinement, while Delo and Reed served probation terms of 30 months and 18 months, respectively.

Trump’s pardons came just months after BitMEX itself agreed to a $100 million settlement over allegations that it failed to enforce required compliance measures to prevent money laundering. The company had been accused of ignoring U.S. legal obligations while continuing to attract American traders. BitMEX’s registration process, which allowed users to sign up with only an email address, contributed to its legal troubles, as did its failure to enforce its ban on U.S. users.

READ MORE:

Is the U.S. Government Quietly Selling Bitcoin?

In response to the pardons, Delo expressed that the charges were the result of outdated laws and a politicized enforcement effort. He considered the pardons as a form of “vindication” and asserted that they should never have been prosecuted in the first place. Along with their criminal fines, the co-founders each paid $10 million, and the company also faced a $30 million civil penalty from the Commodity Futures Trading Commission (CFTC).

Founded in 2014, BitMEX became a leading player in the cryptocurrency derivatives market, offering high-leverage trading products and minimal registration requirements. At its peak, it handled billions in daily trading volume and attracted customers worldwide, including many from the U.S. However, the U.S. authorities began investigating BitMEX as part of a broader crackdown on offshore platforms catering to U.S. customers without sufficient regulatory compliance. This case was one of the first instances of federal action against cryptocurrency exchanges, setting a significant precedent for future regulatory measures in the industry.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.