US Justice Department fines BitMEX $100m for Bank Secrecy Act breaches

HDR Global Trading Limited, the operator of the BitMEX crypto-derivatives exchange, was fined $100m in the United States for violating the Bank Secrecy Act.

Global cryptocurrency exchange BitMEX fined $100 million for violating Bank Secrecy Acthttps://t.co/eU2zem7JRP

— US Attorney SDNY (@SDNYnews) January 15, 2025

The company behind the platform deliberately failed to develop and implement an effective anti-money-laundering (AML) programme and know-your-customer (KYC) procedures.

“It is extremely important that all financial institutions, including cryptocurrency exchanges, comply with these rules to protect our country’s economy and national security. The sentence handed down sends a clear signal that companies that intentionally violate these norms […] will face consequences,” said the U.S. Attorney for the Southern District of New York, Matthew Podolsky.

According to court documents, Arthur Hayes, Benjamin Delo and Samuel Reed founded BitMEX around 2014. A year later, Gregory Dwyer joined as director of business development.

For an extended period, the exchange served U.S. customers and conducted operations through offices in the country without registering with the CFTC and without implementing AML programmes.

According to law enforcement, the platform’s leadership and the company knew they were violating statutory requirements. They also took steps to conceal the true nature of the business from U.S. banking institutions in order to “funnel millions of dollars”.

Hayes and Delo pleaded guilty in February 2022; Reed struck a deal with authorities in March, and Dwyer in August.

BitMEX admitted guilt in July 2024.

In 2021, as part of settling a CFTC civil suit, the exchange paid a $100m fine. 

Financial penalties imposed by the regulator on Hayes, Delo and Reed amounted to $10m each.