The BitMEX co-founder and former chief technology officer Samuel Reed struck a deal with U.S. authorities and pleaded guilty to Bank Secrecy Act violations (BSA). The Department of Justice said.
“Reid joined BitMEX’s other co-founders — Arthur Hayes and Benjamin Delo — in admitting that the company willfully violated the anti-money-laundering requirements to which U.S. financial institutions must comply,” said prosecutor Damian Williams.
Under the terms of the agreement with authorities, Reed will pay a $10 million fine — the amount the Justice Department valued as the illicit proceeds. The maximum penalty for violating the BSA is up to five years in prison.
In October 2020, the U.S. Department of Justice charged with violating the BSA the co-founders of the exchange Arthur Hayes, Ben Delo, Samuel Reed, and Greg Dwyer.
Separately from the Justice Department’s charges, the civil action against the exchange and affiliated entities was filed by the CFTC. The defendants were Hayes, Reed and Delo.
Reed was arrested in the United States, and he was released on a $5 million bail.
Based in the United Kingdom, Delo surrendered to U.S. authorities in March 2021. Hayes flew from Singapore to Hawaii in April, after agreeing to the terms of voluntary surrender.
The court also released both on bail. The bail for Hayes was $10 million, and for Delo it was $20 million.
Dwyer, who was living on the Bermuda Islands, agreed to extradition in September. At the end of 2021, his lawyers convinced the court to postpone the proceedings to October 2022 due to insufficient time to prepare for the trial.
The CFTC civil action against the exchange was settled, with a $100 million fine and an independent audit.
In February 2022, Hayes and Delo pleaded guilty to BSA violations. They agreed to pay $10 million in fines each.