Bitmex Founders Ordered to Pay $30M For Illegally Operating a Crypto Derivative Trading Platform and Anti-Money Laundering Violations

The founders of Bitmex were fined $30M for unlawfully running a BTC derivatives trading platform and anti-money laundering offenses, according to the court. Arthur Hayes, Samuel Reed, and Benjamin Delo all have to pay $10M.

The Founders of Bitmex Have Been Fined $30M

For running an unlawful bitcoin derivative trading platform and anti-money laundering offenses, the Southern District of New York’s District Court ordered the founders of Bitmex to pay $30M, the CFTC stated on May 5th.

Since Arthur Hayes, Benjamin Delo, and Samuel Reed are the three Bitmex co-founders, the CFTC stated that they must each pay $10 million in civil penalties and are prohibited from subsequent breaches of the CEA and CFTC rules as they charged by issuing the orders.

In October 2020, Bitmex and its three founders became the subject of a complaint by the CTFC. Bitmex was fined $100 million in August 2021 by the CFTC for violating Commodity Exchange Act and CFTC laws, according to the derivatives watchdog, which outlined the settlement.

The office of the United States Attorneys for New York’s Southern District also accused Benjamin Delo and Arthur Hayes on accusations of willfully inciting Bitmex to breach the Bank Secrecy Act and conspiracy to conduct that same violation, the CFTC added. Arthur Hayes, Samuel Reed, and Benjamin Delo have pleaded guilty to one of the indictments against them. According to the derivatives regulator, the three defendants will be punished within the next several weeks.

The Case Overview for Bitmex 

The co-founders Samuel Reed, Benjamin Delo, and Arthur Hayes each managed Bitmex between November 2014 and October 1st, 2020, according to the consent orders, which hold them accountable for Bitmex’s alleged breaches of the Commodity Exchange Act and Commodity Futures Trading Commission laws because they failed to create and maintain appropriate measures to prevent or identify the illegal behavior of Bitmex.

The court’s order from August 10th last year says that Bitmex broke the law by running a place to trade or process swaps without permission from the CFTC to do so as a DCM or a SEF. To add to their woes, Bitmex didn’t register with the CFTC, did not have proper KYC/AML processes, and did not have a CIP. Those are just a few of the issues that Bitmex had to deal with.

Leave a Reply

Your email address will not be published.


Be The Bank Review, – Is BeTheBank Scam or a Good Broker?

Be The Bank Review Be The Bank Rating 4.7 Summary Read our Be The Bank review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is bethebank scam or legit” and much more! We have checked all the aspects of this broker and we recommend BeTheBank for online trading. It […]

Coins Capital Review, – Is Coins Capital Scam Or Legitimate?

Coins Capital Trading Platform Rating 4.3 Summary Read our Coins Capital review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is Coins Capital scam or legit” and much more! Coins Capital Review You have been thinking for a long time if trading is for you. You have finally […]

AI Center Indicts ChatGPT Developer of Trade Law Violations: Claims Bias & Deception

The organization alleges that the creator of ChatGPT has violated Section 5 of the Federal Trade Commission Act with the release of GPT-4. This section of the act prohibits any practices or acts considered deceptive or unfair and that affect commerce. CAIDP has complained to the US Federal Trade Commission, intending to prevent the distribution […]

Investors Excited As XRP Market Capitalization Hits $20 Billion

It’s been wide jubilation today after XRP investors heard the announcement that the market capitalization has surged to $20 billion. XRP: a cryptocurrency developed and managed by Ripple, a San Francisco, United States, distributed data company. It was gathered that the coin itself responded to this development through a climb in price – it was […]

GlobalTrades Review, – Is Global Trades Scam or a Good Broker?

GlobalTrades Trading Platform Rating 4.6 Summary Read our Global Trades review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is scam or legit” and much more! GlobalTrades Review As people look at cryptocurrencies and their immense success, they are eager to start their own trading businesses. While […]