US Court Fines Bitmex Founders $30 Million For Operating Illegal Crypto Platform BlockBlog

The Bitmex founders were ordered to pay $30 million “for illegally operating a cryptocurrency derivatives trading platform and anti-money laundering violations.” Arthur Hayes, Benjamin Delo and Samuel Reed are to pay $10 million each.

Bitmex founders fined $30 million

The Commodity Futures Trading Commission (CFTC) announced on Thursday that the United States District Court for the Southern District of New York ordered the founders of Bitmex to pay a total of $30 million “for illegally operating a derivatives trading platform for cryptocurrency and anti-money laundering violations”. ”

Noting that the three co-founders of Bitmex are Arthur Hayes, Benjamin Delo, and Samuel Reed, the CFTC clarified:

The orders require each to pay a civil penalty of $10 million and also bar Hayes, Delo and Reed from further violations of the Commodities Exchange Act (CEA) and CFTC regulations, as charged.

The orders stem from a CFTC complaint filed in October 2020 against Bitmex and its three founders.

The CFTC resolved the action against Bitmex in August 2021 which “incorporated a $100 million civil monetary penalty and injunctions against future violations of CEA and CFTC regulations,” the derivatives watchdog detailed.

The U.S. Attorney’s Office for the Southern District of New York has also “charged Hayes, Delo, Reed, and one other person with willfully causing Bitmex to violate the Bank Secrecy Act and conspiracy to commit the same offence,” it said. noted the CFTC, stating:

Hayes, Delo and Reed pleaded guilty to count one of the indictments against them.

All three are expected to be sentenced in the coming weeks, the derivatives regulator added.

What do you think about the co-founders of Bitmex having to pay $30 million? Let us know in the comments section below.

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Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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US Court Fines Bitmex Founders $30 Million For Operating Illegal Crypto Platform BlockBlog

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