NEW YORK, Thursday, July 11, 2024- BitMEX, one of the world’s leading cryptocurrency exchanges, has pleaded guilty to violating the Bank Secrecy Act (BSA) by failing to establish, implement, and maintain an adequate anti-money laundering (AML) program, the U.S. Department of Justice announced on Wednesday, July 10.
US Attorney General Website Post can be accessed here.
BitMEX agreed to pay a $100 million fine in a simultaneous settlement with the U.S. Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN). This amount includes a $50 million penalty for the BSA violations and an additional $50 million to settle separate charges brought by the CFTC.
The charges, filed in the U.S. District Court for the Southern District of New York, mark a significant regulatory action against the crypto industry. BitMEX executives, including co-founders Arthur Hayes and Benjamin Delo, admitted to the breaches as part of a plea agreement.
The company’s AML failings include not filing Suspicious Activity Reports (SARs) for transactions that involved funds derived from illegal activity, as well as allowing customers to open accounts without proper identification.
The violations, which occurred from 2014 through 2020, exposed the exchange to potential exploitation by criminal enterprises.
BitMEX has stated that it has taken significant steps to enhance its compliance program and cooperate with regulators.
