settle the legal allegations against it, the BitMEX
team will consign USD $50 million to each of the entities. The settlement in question does not include any benefits for the platform’s former CEO Arthur Hayes.
The cryptocurrency derivatives trading platform BitMEX announced today that it has reached a settlement with the CFTC and FinCEN,
in which it
agrees to pay a fine equivalent to USD $100 million for the charges against it
BitMEX agrees to pay a fine to the CFTC and FinCEN
to an official publication made by the BitMEX team , the administration of the platform will pay about USD $50 million to each entity to settle the legal issues, in which they were accused of offering between 2014 and 2020 to users residing in the US commercial products without the respective license for these operations, without attending to the due KYC and AML
guidelines established by local authorities. Regarding
this resolution, the director of compliance for the CFTC, Vincent McGonagle, indicated that all platforms for cryptocurrency trading must embrace and comply with the legal frameworks established by US regulators, which BitMEX
violated and motivated the opening of a legal process against it in 2020, pointing out:
“This action highlights that the registration requirements and basic consumer protections established…apply equally within the digital currency market.”
For her part, FinCEN deputy director AnnLou Tirol noted that BitMEX
is accused of processing more than USD $200 million in transactions for unauthorized platforms and services for digital asset commingling, stating:
“BitMEX’s rapid growth led it to become one of the largest futures traders offering digital currency derivatives without an effective anti-money laundering program… This put the U.S. financial system at great risk…”.
Bad prognosis for Arthur Hayes
managed to reach a mediation with the aforementioned authorities and pledged not to offer its services in the US, at least until the operational drawbacks within the local market are resolved, the platform did not address the situation of its former CEO, Arthur Hayes, who the US Department of Justice flagged for criminal charges against him.
As for Hayes, a spokesperson for his legal team indicated that the settlement reached by BitMEX with the CFTC does not include the former CEO or other executives targeted by law enforcement. He also reiterated that they will continue to work to prove the innocence of the defendants:
“As their defense will demonstrate, from the earliest days of the company, the co-founders sought to comply with applicable law as it developed over time. The actions against Arthur, Ben and Sam by the U.S. authorities are unfounded and represent an unwarranted overreach. The co-founders look forward to defending themselves in court.
Version by Angel Di Matteo / DiarioBitcoin
Image by Unsplash