BitMEX Founders Plead Guilty To Violating Bank Secrecy Act

BitMEX is making headlines following the latest reports.

According to the latest reports, the founders of crypto exchange platform BitMex are pleading guilty to violating a law that requires financial institutions to assist government agencies in detecting money laundering.

It’s been revealed that a new U.S. Department of Justice (DOJ) press release, BitMex executives Arthur Hayes and Benjamin Delo plead guilty today to violating the Bank Secrecy Act by willfully failing to establish anti-money laundering protocols on the embattled exchange platform.

The U.S. Attorney Damian Williams said this:

“Arthur Hayes and Benjamin Delo built a company designed to flout [their obligations]; they willfully failed to implement and maintain even basic anti-money laundering policies.”

He continued and stated the following:

“They allowed BitMEX to operate as a platform in the shadows of the financial markets. Today’s guilty pleas reflect this Office’s continued commitment to the investigation and prosecution of money laundering in the cryptocurrency sector.”

According to official reports, both Hayes and Delo have agreed to pay $10 million criminal fines as a result.

Check out the original article in order to learn more details about the case.

Back in January, crypto exchange BitMEX airdropped 1.5 million BMEX, its first native tokens, to users as it looks to revive retail interest. The tokens were airdropped based on a user’s previous activity on the exchange.

According to data from CoinDesk, the Ethereum-based tokens are locked in a 5-year vesting contract and have a maximum supply of 450 million.

These will be used to reward new and existing BitMEX users and allow them to get discounts on trading fees.

Check out more relevant noes about percentages below:

“The tokens are distributed as follows: 5% are reserved for future airdrops, 20% for liquidity provision when BMEX spot trading is launched, 20% as BitMEX employee incentives, 30% for marketing and affiliate rewards, and 25% as a long-term reserve.”