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Friday, January 27, 2023

BitMEX Founders Will Have To Pay $30M Civil Penalty

BitMEX‘s 3 co-founders will have to pay substantial fines because they broke many laws and the CEA.

In a $30 million ruling, the US DC for the South District of NY named former BitMEX Chief Exec Officer Arthur Hayes as one of three founders who must pay penalties.

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On Thursday, the CFTC issued a statement following the conclusion of a court case, saying that Benjamin Delo, Samuel Reed, and Hayes were all fined 10 million dollars for violating various provisions of the CEA and regulations by the CFTC between November 2014 and October 2020.

CFTC Filed Lawsuit Against The Founders Of BitMEX

CFTC sued the ex and its three founders. The defendants are accused of “running BitMEX while working on key portions of BitMEX’s business from America, and illegally allowing orders and payments from American clients to trade cryptocurrencies,” including derivatives of Bitcoin (BTC), Ether (ETH), and LTC.

Operating a swap trading or processing facility without CFTC authorization as a DCM or Swap Execution Facility is prohibited by the CFTC.

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The Commodity Futures Trading Commission’s Carline D. Pham made a second statement on Thursday, restating the CFTC’s intention to pursue “wrongdoers with an unfair advantage” who disobey the law.

Hayes and Delo pleaded guilty to Bank Secrecy Act offenses in February, the DOJ stated. “Willfully ignoring to create, implement, and manage an AML program”

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