BitMEX co-founders Hayes and Delo plead guilty Bank Secrecy Act violations

The Department of Justice said Thursday that Arthur Hayes and Benjamin Delo, co-founders of the crypto derivatives exchange BitMEX, have pleaded guilty to violating the US Bank Secrecy Act.

The announcement closes a legal chapter that began in the fall of 2020, when Hayes and Delo, in addition to co-founder Samuel Reed and BitMEX head of business development Greg Dwyer, were accused of “evading U.S. anti-money laundering requirements,” US officials said at the time.

Specifically, the two “pled guilty to one count each of violating the Bank Secrecy Act, which carries a maximum penalty of 5 years in prison,” per the DOJ. 

Per the DOJ statement:

“Under the terms of their respective plea agreements, HAYES and DELO each agreed to separately pay a $10 million criminal fine representing pecuniary gain derived from the offense.”

“Today’s guilty pleas reflect this Office’s continued commitment to the investigation and prosecution of money laundering in the cryptocurrency sector,” US Attorney Damian Williams said in a statement. 

A BitMEX spokesman told The Block: “We are aware of developments in the DOJ case but will not be commenting on an ongoing legal matter to which no BitMEX entity is a party. It’s business as usual, all funds are safe, and there is no impact to the functionality of the platform including deposits and withdrawals.”

This story is developing.