BitMEX co-founder given probation instead of prison

A federal court in New York has imposed a 30-month probation on BitMEX co-founder Benjamin Delo, accused of violating the Bank Secrecy Act (BSA). CoinDesk reports.

The defense thanked the court for rejecting the “government’s cynical attempt to exaggerate the seriousness of the charges.”

“In today’s probation sentence, the court found that the case involved non-compliance with requirements that led to regulatory violations, and nothing more,” the attorney said.

Earlier, the U.S. Department of Justice initiated the BSA violation case in October 2020. In February 2022, BitMEX co-founders — Arthur Hayes, Benjamin Delo and Samuel Reed — pleaded guilty and agreed to pay fines of $10 million each.

Separately, the CFTC filed a suit against the exchange, accusing its founders of operating an unregistered trading platform and violating KYC/AML procedures.

the case and Hayes surrendered to U.S. authorities in March and April 2021, respectively. They were released on bail of $20 million and $10 million.

The civil action by the CFTC against the exchange was settled in August 2021, with a $100 million penalty and an independent audit.

Hayes was previously sentenced to six months of house arrest and two years of probation.

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