Arthur Hayes Gets Two Years Probation For Owning BitMEX’s AML Incident


One of New York’s four federal district courts sentences founder and former CEO Arthur Hayes to two years of probation and six months in home detention after a long-awaited ruling over money laundering activity on the BitMEX cryptocurrency exchange comes to an end. known to have done .

Arthur Hayes, along with other BitMEX co-founders Benjamin Delo and Samuel Reed, and Gregory Dwyer, the company’s first non-employee, pleaded guilty to violating the Bank Secrecy Act (BSA) on February 24. admit “Intentional failure to set up, implement, and maintain an anti-money laundering (AML) program on BitMEX”.

Prosecution of BitMEX co-founders and employees for BSA violations. Source: Justice.gov

Conviction of money laundering assistance is a punishable offense, often punishable by up to five years in prison. However, both Hayes and Delo pleaded guilty ahead of their March trial date and agreed to pay a fine of $10 million each.

On April 7, Cointelegraph reported that Hayes had voluntarily surrendered to U.S. authorities in Hawaii six months after federal prosecutors first filed charges, his attorney stated:

“Mr. Hayes has appeared in court voluntarily and looks forward to fighting these unjust charges.”

Depending on the Following the charges, public court filings, and court statements, Hayes was released after paying a $10 million bail bond while further proceedings in New York. However, prosecutors at the Office’s Money Laundering and Transnational Criminal Enterprises Unit found the entrepreneur was guilty of failing to implement AML safeguards, including failing to meet his Know Your Customer (KYC) obligations.

Despite impending jail time, Hayes pleaded guilty and was sentenced to a home sentence, which would mean spending the first six months of his sentence at home. He also agreed to pay a $10 million fine.

Relevant: Blockchain and cryptocurrencies can help track financial crime.

Breaking the myth that money can be easily laundered using cryptocurrencies, a new analysis highlights the potential of blockchain technology and cryptography to track financial crimes.

Numerous projects within the cryptocurrency ecosystem have become victims of targeted attacks, but malicious actors continue to struggle to monetize the stolen funds.

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Dmytro Volkov, chief technology officer of cryptocurrency exchange CEX.IO, told Cointelegraph that the notion that cryptocurrencies are primarily used by criminals is outdated.

“In the case of Bitcoin (BTC), where the blockchain ledger is publicly available, a serious exchange with a capable analytics team makes it easy to monitor and deter hackers and launderers before harm occurs.”

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