Former BitMEX founders admitted to violating US laws

Arthur Hayes and Benjamin Delo deliberately avoided organizing anti-money laundering measures

25.02.2022 - 13:15

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What’s new? The US Department of Justice has stated that former BitMEX founders Arthur Hayes and Benjamin Delo have pleaded guilty to willfully violating the Bank Secrecy Act by failing to set up an anti-money laundering system. They may face up to five years in prison, with their exact sentences to be determined later by the federal judge, according to the Manhattan prosecutor’s office.

Statement of the US Department of Justice

What are the details of the charges? According to a statement of Damian Williams, the US Attorney for the Southern District of New York, the defendants allowed the exchange to operate “in the shadows of the financial markets.” Also, Hayes and Delo continued to serve Iran despite sanctions against the country. The prosecutors allege that the company’s management ignored reports that BitMEX is being used to launder illicit proceeds and transfer money, contrary to US sanctions.

The charges were filed back in the fall of 2020, after which Hayes resigned as CEO. BitMEX paid a $100 million fine to settle the claims. Both founders agreed to plead guilty for a reduced sentence.

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