BitMEX Pleads Guilty to Violating Anti-Money Laundering Laws

The US Department of Justice announced that BitMEX has pleaded guilty to violating the Bank Secrecy Act due to operating without a sufficient AML program from 2015 to 2020.

US Attorney Damian Williams stated that BitMEX failed to establish and maintain an adequate AML program, exposing the financial system to risks of large-scale money laundering and sanctions evasion.

BitMEX founders Arthur Hayes, Benjamin Delo, and Samuel Reed were aware that their lack of proper AML measures affected US-based users, violating federal law.

“BitMEX became a conduit for significant money laundering and sanctions evasion, threatening the financial system’s integrity,” Williams stated on Wednesday. “This guilty plea underscores the necessity for cryptocurrency firms to adhere to U.S. law if they wish to operate in the U.S. market.”

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BitMEX, incorporated in the Republic of Seychelles, could see responsible parties facing up to five years in prison and fines.

In 2022, Hayes, Delo, and Reed were ordered to pay a combined $30 million civil penalty and received probation after pleading guilty to AML violations.

Alexander Stefanov