From cryptocurrencies to prison: the former BitMex CEO punished by American justice

The end of legal setbacks for BitMEX – It has been more than two years since trading platform BitMEX is in the crosshairs of US regulators. He is accused of all evils: money laundering, market manipulation or trading against his customers. So many wrongs that have now fallen on the top of the platform.

BitMEX faces US justice

Launched in 2014, BitMEX is a cryptocurrency exchange platform. He has worked hard for the democratization of Bitcoin and cryptocurrencies in general. It offers various revolutionary services for the time, such as leveraged trading or also bitcoin futures.

However, in October 2020, things got worse for BitMEX. In fact, the The CFTC has issued a complaint against the platform. This is therefore the goal of three counts:

  • Management of an unregistered trading platform;
  • Failure to implement the anti-money laundering procedures envisaged;
  • Failure to implement KYC (Know Your Customer) procedures.

Despite a desperate attempt to create a KYC, American justice does not let BitMEX go and continues its proceedings against the founders, including CEO Arthur Hayes.

After several months on the run, Samuel Reed, Benjamin Delo and finally Arthur Hayes were arrested by the American police before being released on bail pending trial in March 2022.

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BitMEX CEO receives 2 years in prison

Last February, more than two years after the events, Arthur Hayes finally found himself before the federal court in New York.

On the occasion of his judgment, the latter pleaded guilty to the counts and announced that he would take “full responsibility for his actions”.

At the end of the trial, Arthur Hayes was sentenced to two years of probationwith 6 months of house arrest.

During his speeches, Arthur Hayes expressed great regret over the actions of BitMEX:

“I am deeply sorry that I took part in this criminal activity. I ask that you allow me to return home deeply repentant and able to begin the next chapter of my life. “

Finally, Arthur Hayes is not doing so badly. He faces a maximum sentence of 10 years in prison.

Another founder of a cryptographic project could follow the same fate as Arthur Hayes. In fact, following the collapse of the UST and the MOON, Do Kwon, the founder of Terra Luna, is being targeted by an investigation conducted by South Korean financial regulators.

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