BitMEX Fined $100 Million by the US Department of Justice
Date: 2025-01-17 Author: Henry Casey Categories: BUSINESS
HDR Global Trading Limited, the company that operates the BitMEX platform, has been fined $100 million for knowingly failing to comply with anti-money laundering (AML) requirements and failing to have effective Know Your Customer (KYC) procedures.
US Attorney for the Southern District of New York Matthew Podolsky noted that compliance with these rules is necessary to protect the economy and national security. “This case demonstrates that violating these rules has serious consequences,” he stressed.
BitMEX was founded in 2014 by Arthur Hayes, Benjamin Delo, and Samuel Reed. A year later, Gregory Dwyer joined them as director of business development. Despite the bans, the exchange continued to serve US users and conduct transactions in the US without registering with the CFTC or implementing mandatory AML programs.
Court documents indicate that the exchange's management was aware that its actions were illegal. Moreover, it took steps to conceal the true nature of the transactions from US banks, which allowed the company to move large sums of money.
Hayes and Delo pleaded guilty in early 2022, Reed made a deal with the authorities in March of the same year, and Dwyer did so in August. The company's own plea occurred in July 2024.
Earlier in 2021, BitMEX agreed to pay $100 million as part of a settlement of a civil lawsuit from the CFTC. In addition, Hayes, Delo, and Reed were each fined $10 million.
