Bank

Secret

Bitcoin

Read

<ul>
 <li>BitMEX pleaded guilty to violating the Bank Secrecy Act by failing to implement an adequate AML program from 2015 to 2020.</li>
 <li>BitMEX founders Arthur Hayes, Benjamin Delo, and Samuel Reed face up to five years in prison and significant fines for their violations.</li>
 <li>The case emphasizes the necessity for cryptocurrency exchanges to comply with US AML and KYC laws to operate in the US market.</li>
</ul>
<p>According to the US Department of Justice, the BitMEX Bitcoin exchange <a href="https://www.justice.gov/usao-sdny/media/1359731/dl" target="_blank" rel="noopener noreferrer nofollow">pleaded</a> guilty to breaking the Bank Secrecy Act, where the exchange failed to create and sustain an adequate Anti-Money Laundering (AML) system between 2015 and 2020. This fits the criminal accusations against numerous BitMEX top officials and staff members scheduled for a trial in 2022.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">In response to the U.S. Department of Justice’s decision to file a charge of Bank Secrecy Act (BSA) violation against HDR Global Trading Limited (HDR), the entity owning and operating BitMEX, we would like to share the following statement.<br><br>The BSA charge is old news – this is… <a href="https://t.co/xvnGvfPvOA" rel="noopener noreferrer nofollow">pic.twitter.com/xvnGvfPvOA</a></p>— BitMEX (@BitMEX) <a href="https://twitter.com/BitMEX/status/1811136895151382899?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 10, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>According to US Attorney Damian Williams, BitMEX did not run a proper AML program. Rather, it disregarded Know Your Customer (KYC) guidelines and just asked consumers to submit an email address. Arthur Hayes, Benjamin Delo, and Samuel Reed, the founders, knew their actions broke federal law. As a result, the trade became vulnerable to major money laundering and sanctions avoidance operations.</p>
<p>Incorporated in the Republic of Seychelles, BitMEX currently finds itself in major legal hot ground. The liable parties could be fined heavily and sentenced to up to five years in jail. A court decided in a case brought by the US Commodity Futures Trading Commission in 2022 that Hayes, Delo, and Reed owed a combined $30 million civil penalty. After confessing to breaking AML guidelines under the BSA, they were sentenced individually to probation.</p>
<p>This case emphasizes the need for Bitcoin firms to follow US legislation to operate within the US market. Other Bitcoin exchanges should be reminded of the need of putting strong AML policies into effect by the case against BitMEX.</p>
<h4 class="wp-block-heading" id="h-read-also">Read Also:</h4>
<ul class="wp-block-yoast-seo-related-links yoast-seo-related-links">
 <li><a href="https://cryptonewsland.com/temporary-downtime-on-21-september-to-fix-bitmex/" rel="noopener noreferrer nofollow">Temporary Downtime on 21 September To Fix BitMEX</a></li>
 <li><a href="https://cryptonewsland.com/bitmex-founders-fined-30m-for-illegal-operations/" rel="noopener noreferrer nofollow">BitMEX Founders Fined $30M for Illegal Operations</a></li>
 <li><a href="https://cryptonewsland.com/paxful-co-founder-pleads-guilty-in-aml-conspiracy-case/" rel="noopener noreferrer nofollow">Paxful Co-Founder Pleads Guilty in AML Conspiracy Case</a></li>
 <li><a href="https://cryptonewsland.com/xrp-enthusiast-debunks-myth-no-secret-amendments-in-the-xrp-ledger-ecosystem/" rel="noopener noreferrer nofollow">XRP Enthusiast Debunks Myth: No Secret Amendments in the XRP Ledger Ecosystem</a></li>
 <li><a href="https://cryptonewsland.com/former-ftx-exec-pleads-guilty-seeks-leniency-in-election-fraud-case-as-locked-sol-assets-auctioned/" rel="noopener noreferrer nofollow">Former FTX Exec Pleads Guilty, Seeks Leniency in Election Fraud Case as Locked SOL Assets Auctioned</a></li>
</ul>
<p>The post <a href="https://cryptonewsland.com/bitmex-pleads-guilty-to-bank-secrecy-act-violations/" rel="noopener noreferrer nofollow">BitMEX Pleads Guilty to Bank Secrecy Act Violations</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

BitMEX Pleads Guilty to Bank Secrecy Act Violations

Crypto News Land

Other articles published on Jul 12, 2024

JPMorgan says Bitcoin will make a bullish comeback in August

Exploring MS404: The MintSwap Native Asset Built upon ERC-404 Standard

Coinbase Unveils 'One-Stop' Crypto App To Simplify User Experience

Federal Judge Questions Coinbase's Probe into SEC Chair’s Communications

Pepe Price Prediction: PEPE Plunges 7% As This New Pepe Upgrade Zooms Towards $4 Million In Presale

AGASWAP VOLUME WAS ON ATH OF $4000 USD TRADING VOLUME

Join our free newsletter for daily crypto updates!