Cryptocurrency platform BitMEX was fined $100 million and placed on two years’ probation for violating U.S. anti-money laundering (AML) laws. The trading platform was sentenced after pleading guilty to willfully failing to implement a proper AML and know-your-customer (KYC) program, as required for businesses serving U.S. customers.
According to the publicized document conveying the penalty, the trading platform got into a guilty plea on July 10, last year. Subsequently, it received its sentencing on January 15, 2025. Meanwhile, reacting to the new development, Attorney for the United States Matthew Podolsky said: “Today’s sentence sends a clear message that companies that willfully violate these rules and refuse to implement AML/KYC programs will face consequences.”
BitMEX Founders and Executives Face Penalties for Circumventing U.S. Regulations
The charges stem from the company’s operations since its launch in 2014. According to federal prosecutors, BitMEX knowingly ignored U.S. regulations designed to prevent money laundering despite operating from U.S. offices and serving American customers. The trading platform’s executives, including founders Arthur Hayes, Benjamin Delo, and Samuel Reed, along with Gregory Dwyer, failed to set up the necessary safeguards, making it easier for illicit activities to occur on the platform.
BitMEX was aware that its services violated the Bank Secrecy Act by bypassing required identity checks. Instead of requiring customers to submit standard identification information, the platform only asked for an email address to use its trading services. This lack of a robust KYC process allowed U.S.-based users to continue trading despite the company’s awareness of the legal requirements. Federal authorities noted that BitMEX executives actively undermined efforts to stop U.S. customers from accessing the platform, prioritizing profit over compliance with U.S. law.
BitMEX Misled Banks and Facilitated Illicit Transactions
Furthermore, BitMEX misled financial institutions about its operations. In one instance, the company falsely described the nature of a subsidiary to facilitate the flow of millions of dollars through the U.S. financial system, evading scrutiny from regulators.
Four executives, including the three founders and Dwyer, previously pleaded guilty to charges related to these violations. They each received separate sentencing for their involvement in circumventing U.S. financial regulations in 2022. In addition to the corporate fine, BitMEX will now operate under the terms of a two-year probationary period, which will subject the company to ongoing monitoring by U.S. authorities.
The case underscores increasing scrutiny of the cryptocurrency sector, particularly regarding compliance with U.S. financial regulations. It also highlights the ongoing efforts of federal agencies to hold companies accountable for violations that jeopardize the integrity of the financial system.
