Key Takeaways
- BitMEX co-founder Arthur Hayes has been sentenced to 2 years’ probation and 6 months of dwelling detention by a federal court docket in New York.
- Hayes pled responsible in February to violating the U.S. Financial institution Secrecy Act.
- In accordance with Hayes’ plea deal the sentence may have carried as much as 12 months in jail, with prosecutors in search of further time final week.
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Arthur Hayes has been sentenced to 2 years’ probation plus six months of dwelling confinement for violating the U.S. Financial institution Secrecy Act.
Hayes Sentenced
A U.S. court docket in New York has sentenced BitMEX co-founder Arthur Hayes for violating the U.S. Financial institution Secrecy Act by failing to adjust to anti-money laundering protocols.
Hayes, who pled responsible in February, will serve two years’ probation and 6 months of dwelling detention. Hayes’ co-founders, Benjamin Delo and Samuel Reed, who pled responsible alongside Hayes in February, are set to be sentenced in June.
The BitMEX executives have been accused of providing buying and selling providers to U.S. and worldwide prospects with out observing required anti-money laundering and Know-Your-Buyer procedures. As such, they stood accused of facilitating cash laundering.
The choose within the case, Choose John Koeltl, mentioned throughout Hayes’ sentencing that his actions weren’t a matter of mere oversight, however somewhat that Hayes understood the implications of failing to adjust to anti-money laundering procedures:
“He knew these procedures have been required to keep away from having his firm used for cash laundering and different unlawful functions… the crime was greater than a easy regulatory oversight.”
Hayes’ attorneys requested for no jail time, whereas prosecutors within the case sought greater than a 12 months. Prosecutors within the case mentioned that complete compliance throughout the crypto could be unsuccessful if founders and executives “imagine there aren’t any significant repercussions for failing to adjust to the legislation.”
BitMEX was initially accused of failing to implement anti-money-laundering (AML) applications final 12 months. In August, its father or mother firm was fined $100 million in penalties as a part of a settlement with the CFTC and FinCEN. Hayes, Delo, and Reed have every personally been fined $10 million.
BitMEX continues to function.
Disclosure: On the time of writing, the creator of this piece owned BTC, ETH, and several other different cryptocurrencies.
