Former BitMEX chief and co-founder plead guilty to one count

The founders of the cryptocurrency derivatives exchange BitMEX, Arthur Hayes and Ben Delo, pleaded guilty to one count of violating U.S. law. This is говорится on the U.S. Department of Justice’s website.

“Arthur Hayes and Ben Delo […] pleaded guilty to violating the Bank Secrecy Act, having willfully failed to establish, implement and maintain an anti-money-laundering program at BitMEX,” the agency said.

According to the press release, they each agreed to pay $10 million in penalties. The Justice Department described the amount as “a material benefit derived from unlawful activity”.

The maximum penalty for the corresponding crime is up to five years in prison. The court will determine the exact sentence at a later date.

In a statement cited by CoinDesk, Hayes said he takes responsibility for his actions “and looks forward to putting this matter behind him.”

According to a spokesman for Delo, he regrets that BitMEX “did not have an adequate know-your-customer program”.

In the company itself, they said they were aware of the events in the case but declined to comment on the ongoing proceedings.

In October 2020, the U.S. Department of Justice charged the co-founders Arthur Hayes, Ben Delo, Samuel Reed, and Greg Dwyer with violating the Bank Secrecy Act. Each faces up to five years in prison.

Separately, the civil action brought by the U.S. Commodity Futures Trading Commission (CFTC) against the exchange was settled, with the defendants Hayes, Reed, and Delo.

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

Based in the United Kingdom, Delo surrendered to American 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. For Hayes, the amount was $10 million, and for Delo — $20 million. Dwyer, who resided on the Bermuda Islands, agreed to extradition in September.

The CFTC civil action against the exchange was settled, with the exchange agreeing to a $100 million fine and an independent audit.

Earlier, in late 2021, Dwyer’s lawyers persuaded the court to postpone the proceedings until October 2022 because of insufficient time to prepare for the trial.

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