In a recent ruling, Federal Judge John G. Koeltl ordered BitMEX to pay a $100 million fine, marking a significant turn in the ongoing legal saga centered around allegations of money laundering violations within the United States.
BitMEX Confronts Significant Legal Challenge
This legal hurdle traces back to operations between 2015 and 2020, a period during which BitMEX allegedly failed to comply with the United States Bank Secrecy Act (BSA). This key legislation mandates that financial institutions help government agencies in spotting and thwarting money laundering activities.
Despite arguments from BitMEX’s legal team that a prior $110 million fine alongside guilty pleas from the exchange’s founders constituted ample punishment, Judge Koeltl found further financial repercussions were warranted.
In 2022, BitMEX founders Arthur Hayes and Benjamin Delo pleaded guilty to related charges, each agreeing to a $10 million criminal fine.
Exchange Steps Up KYC and AML Protocols
After the ruling, BitMEX voiced its disappointment over the additional $100 million penalty. Nonetheless, the company acknowledged that this amount was significantly lower than what the Department of Justice initially sought. During plea talks, the DOJ’s demands exceeded $200 million and later surged to about $420 million during sentencing discussions.
The exchange stressed its dedication to compliance, noting substantial enhancements to its business practices post the BSA charges era. These improvements include a strong user verification system and extensive Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. BitMEX proudly notes these measures have gained recognition from customers, partners, and regulatory authorities alike.
In their statement, the company confidently remarked, “As far as we’re concerned, the BSA charge is old news.” BitMEX expressed eagerness to put these legal troubles behind it and concentrate on innovation and delivering quality service to its users.
Moving forward, the exchange is keen on sustaining its status as a leading, reliable, and financially solid crypto derivatives platform. They are committed to continually rolling out new products and innovations to cater to customer needs.
Featured image from DALL-E, chart from TradingView.com.
