Ex-BitmEX CEO Arthur Hayes sentenced to two years’ probation

The former CEO of the cryptocurrency derivatives exchange BitMEX, Arthur Hayes, avoided any real prison time. He was sentenced to two years’ probation with six months of home detention, according to CoinDesk.

Hayes’s deal with the government contemplated a prison sentence of six to twelve months. The charges against him carried the potential for real imprisonment of up to 10 years.

«I deeply regret participating in this criminal activity. My best years lie ahead… I am ready to turn the page and start anew. I ask to be allowed to return home with deep remorse and the opportunity to begin the next chapter of my life», said Hayes in the courtroom.

Within 30 days he must choose a place to serve house arrest, after successful completion he will be able to travel the world, according to the judge’s ruling. Hayes will also have the opportunity to communicate with BitMEX co-founders Samuel Reed and Ben Delo.

In October 2020 the U.S. Department of Justice and CFTC filed lawsuits against Hayes, Delo, Reed and BitMEX’s head of business development Greg Dwyer for violating the Bank Secrecy Act and the rules governing KYC/AML-procedures.

In the same month Reed was arrested in the U.S. and released on a $5 million bail. 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.

As a reminder, Hayes, Delo and Reed admitted to violating the Bank Secrecy Act and agreed to pay fines of $10 million each.

In September 2021 Dwyer agreed to extradition to the U.S. His case hearing was postponed to October 2022.

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