BitMEX settles with CFTC, FinCEN for $100 million, but criminal cases against former execs continue

Aug 10, 2021 | The Block News | 0 comments


On August 10, the Commodity Futures Trading Commission and Financial Crimes Enforcement Network settled their civil lawsuits against crypto exchange BitMEX and its holding company. The firm will pay regulators $100 million and will be barred from dealing in derivatives trading in the U.S. in perpetuity. 

The consent order said of the crypto exchange’s offenses:

“Among other things, BitMEX failed to implement a customer identification program (“CIP”), including know-your-customer (“KYC”) procedures, that would enable it to identify U.S. persons using the BitMEX platform—or determine the true identity of the vast majority of its customers, whether from the U.S. or elsewhere.”

The settling defendants, as named in the consent order, are HDR Global Trading Limited, 100x Holdings Limited, ABS Global Trading Limited, Shine Effort Inc Limited, and HDR Global Servies (Bermuda) Limited.

In his blog on the announcement, current CEO Alex Höptner said that “crypto is becoming more responsible. Comprehensive user verification, compliance, and robust anti-money laundering controls are a must-have.”

“BitMEX represents it has engaged in remedial measures, including the development of an AML program and user verification program,” the CFTC consent order stated.

U.S. regulators initially announced lawsuits against BitMEX and its executive team back in October. These charges included the civil case that today’s injunction ends, as well as criminal charges from the Department of Justice against the founding team of Arthur Hayes, Ben Delo and Samuel Reed. Those cases are still ongoing.

The CFTC consent order is embedded below:

   BitMEX Consent Order by Mike McSweeney on Scribd

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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