The founders of Bitmex have been 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 must pay $10 million each.
Bitmex’s Founders Fined $30 Million
The Commodity Futures Trading Commission (CFTC) announced Thursday that the U.S. District Court for the Southern District of New York has ordered Bitmex’s founders to pay a total of $30 million dollars “for illegally operating a cryptocurrency derivatives trading platform and anti-money laundering violations.”
The CFTC clarified that Bitmex founders Arthur Hayes, Benjamin Delo and Samuel Reed are the same.
Each must pay a civil monetary penalty of $10 million and Hayes and Delo are also ordered to stop Hayes and Reed from violating the Commodity Exchange Act and CFTC regulations.
This order stems from a CFTC lawsuit filed in October 2020 against Bitmex, its founders and the Bitmex team.
The CFTC resolved the action against Bitmex in August 2021 that “incorporated a $100 million civil monetary penalty and injunctions against future violations of the CEA and CFTC regulations,” the derivatives watchdog detailed.
The U.S. Attorney’s Office for the Southern District of New York also “indicted Hayes, Delo, Reed, and one other individual on charges of willfully causing Bitmex to violate the Bank Secrecy Act and conspiracy to commit that same offense,” the CFTC noted, elaborating:
Hayes, Delo and Reed have admitted guilty to one of the charges against them.
They are due to be sentenced within the next few weeks according to the regulatory body for derivatives.
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