Bitmex co-founder Arthur Hayes avoids jail for violating US banking secrecy laws.


Bitmex co-founder Arthur Hayes won’t go to jail for violating US banking secrecy laws. Instead, the former cryptocurrency exchange CEO was sentenced to “six months of home detention and two years of probation.” Hayes agreed to pay a $10 million fine.

Bitmex sentenced to Arthur Hayes

The U.S. Department of Justice (DOJ) announced on Friday that the founder and former CEO of cryptocurrency derivatives exchange Bitmex has been convicted of violating the Bank Secrecy Act (BSA). Heize admitted in February of violating the Bank Secrecy Act.

DOJ says:

Hayes, 36, of Miami, Florida, was sentenced to six months in house arrest and two years of probation. Hayes also agreed to pay a fine of $10 million representing the monetary gain of the crime.

U.S. Attorney Damian Williams said Hayes “willfully disregarded U.S. laws that require corporations to do their part to combat crime and corruption while building a multi-million dollar cryptocurrency trading platform.” he explained.

Williams added: “He deliberately failed to implement and maintain even a basic anti-money laundering policy that allowed BitMEX to function as a platform in the shadow of financial markets.”

Two other Bitmex co-founders, Benjamin Dalo and Sam Reed, also pleaded guilty and will face sentences in the near future.

Like Hayes, the two other co-founders were ordered to pay $10 million each in civil fines.

What do you think of Arthur Hayes’ sentence? Let us know in the comments section below.

Kevin 200x200 closeup

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

image credit: Shutterstock, Pixabay, Wiki Commons

disclaimer: This article is for reference only. We do not directly offer or solicit an offer to buy or sell, or recommend or endorse any product, service or company. bitcoin.com We do not provide investment, tax, legal or accounting advice. Neither the company nor the authors shall be liable, directly or indirectly, for any damage or loss arising out of or alleged to have arisen out of the use or reliance on the content, goods or services mentioned in this article.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”https://connect.facebook.net/en_US/sdk.js#xfbml=1&version=v3.2″;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));

Leave a Comment