Hayes previously admitted that BitMEX, a crypto trading platform, had operated with poor anti-money laundering checks in place.
Arthur Hayes has dodged prison after pleading guilty to failing to implement anti-money laundering measures at BitMEX.
However, the former CEO will be subject to six months of house arrest and electronic monitoring — not to mention two years of probation.
While the lack of a jail sentence is something of a victory for Hayes, the judge stopped short of allowing him to serve his house arrest abroad. Instead, he'll be able to select a location within the U.S.
When his home detention is over, he will be able to travel internationally and check in with a probation officer where necessary.
'My Best Years Are Ahead of Me'
Hayes previously admitted that BitMEX, a crypto trading platform, had operated with poor anti-money laundering checks in place. He's already agreed to pay a fine of $10 million. Addressing the judge, he said:
"I deeply regret that I had a part in this criminal activity. My best years are ahead of me… I am ready to turn the page and start again. I ask that you allow me to return home, deeply remorseful and able to start the next chapter of my life."
Prosecutors had lobbied hard for Hayes to receive the six to 12 months' worth of jail time which had been included in the plea deal he signed.
They said that his offense was a serious one — not least because operating platforms without rigorous checks in place creates a "magnet for people to launder money."
But based on the fact he was a first-time offender who had a track record of charitable giving, probation officials argued incarceration was unnecessary.
The case was being closely watched because it could set a precedent for crimes in other cryptocurrency businesses — and prosecutors believed jail time would send a strong signal that law breaking would not be tolerated.