Court sentences former BitMEX executive Greg Dwyer

A court found former BitMEX chief business development officer Greg Dwyer guilty of violating the Bank Secrecy Act (BSA) and sentenced him to a one-year suspended prison sentence. The report is from The Sydney Morning Herald.

He was allowed to serve the sentence outside the United States, given his residence on the Bermuda Islands.

“The government’s hard line in pursuing Mr. Dwyer is regrettable. He is glad to put this matter behind him and hopes to continue his professional career and personal life,” said his spokesman.

In October 2020 the US Department of Justice charged co-founders Arthur Hayes, Ben Delo, Samuel Reed and Dwyer with violations of the BSA.

Separately, the Commodity Futures Trading Commission filed a civil action against the exchange. The regulator accused its founders of operating an unregistered trading platform and violating KYC/AML procedures.

Delo 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 CFTC’s civil action against the exchange was settled in August 2021, agreeing to a $100 million penalty and an independent audit. In the same year Bermuda-resident Dwyer decided to pursue extradition to the United States.

In spring 2022, Reid pleaded guilty to violations of the BSA. The terms of the agreement with authorities provided for a $10 million fine. The same amount would be paid by Delo and Hayes.

The latter avoided real prison time, he was sentenced to two years’ probation with six months of home confinement. In June Delo was sentenced to 30 months of probation.

Earlier, in August, Dwyer struck a deal with U.S. authorities, agreeing to pay a $150 million fine. He pleaded guilty and confirmed that he had not implemented an anti-money-laundering program at BitMEX.

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