The post BitMEX Fined $100M for Violating Bank Secrecy Act appeared on BitcoinEthereumNews.com.

On January 15, the United States Department of Justice (DOJ) announced that BitMEX and its parent company, HDR Global Trading Limited, have been fined $100 million for violating the Bank Secrecy Act (BSA). The court found that the crypto exchange willfully failed to establish adequate anti-money laundering (AML) and know-your-customer (KYC) protocols. BitMEX’s Response In addition to the fine, the company was sentenced to two years of probation. U.S. Attorney Matthew Podolsky emphasized the ruling’s significance, stating that it sends a strong message to companies that non-compliance with AML and KYC requirements will result in severe consequences. The development follows the firm’s guilty plea in July 2024 to BSA violations after a prolonged legal battle. The company had initially agreed to pay $110 million in penalties but faced additional financial sanctions imposed by the court. BitMEX responded to the judgment in a statement, expressing disappointment over the added penalty but highlighting that the amount was significantly lower than the $420 million the DOJ had pursued over the past three years. The firm characterized the charges as “old news” and expressed relief at resolving the matter, revealing its commitment to moving forward with a renewed focus on innovation and quality services. It also noted efforts to strengthen regulatory compliance, including implementing advanced user verification systems and comprehensive AML and KYC frameworks. Legal Fallout Court documents disclosed that BitMEX, founded in 2014 by Arthur Hayes, Benjamin Delo, and Samuel Reed, with Gregory Dwyer joining in 2015, knowingly operated in the United States without proper registration or a sufficient AML program. Despite being fully aware of legal requirements, the company’s executives bypassed KYC protocols, allowing U.S. traders to access the platform with minimal verification. Investigations further revealed that the exchange deliberately took steps to evade U.S. laws and misled a bank about a…

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Filed under: News - @ January 16, 2025 8:25 pm