Former BitMEX executive agrees to extradition to the United States

Gregory Dwyer, the former BitMEX head of business development who resides on Bermuda, has agreed to extradition to the United States to stand trial. The Royal Gazette reports.

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

In its conclusion, the department stated that the defendants “deliberately failed to create, implement, and maintain an adequate anti-money-laundering program, including a customer identification system commonly known as KYC.”

Reed was arrested in the United States, but he was released on $5 million bail.

Delo, who was in the United Kingdom, surrendered to U.S. authorities in March 2021. Hayes flew from Singapore to Hawaii in April, having previously agreed to the terms of voluntary surrender. The court also released both on bail. Hayes’ bail was $10 million, and Delo’s was $20 million.

The extradition request for Dwyer was sent to Bermuda in July. The Magistrates’ Court ruled that he would be extradited if Bermuda’s overseas-territory governor Rena Lalgie approves the decision.

Judge Hamisi Tokunbo also extended the defendant’s bail to $20,000.

“My client continues to cooperate with the government to ensure a smooth process for his appearance in New York, and has every intention of defending himself against unfounded charges,” said Jerome Lynch, the attorney representing Dwyer.

Separately from the DOJ charges, the US CFTC filed a civil suit against the exchange and affiliates. The defendants were Hayes, Reed, and Delo.

The agency accused them of operating an unregistered trading platform and violating KYC/AML rules.

In August, BitMEX settled the dispute with the CFTC, agreeing to pay a $100 million penalty and undergo independent audits.

Preliminary hearings in the DOJ suit in New York were scheduled for March 28, 2022.