Arthur Hayes, the founder of once the biggest crypto derivatives exchange, BitMex, has pleaded guilty to violating the Bank Secrecy Act, the US Justice Department said.
The exchange did not previously implement AML and KYC requirements which allowed for money laundering and the bypassing of sanctions with the Justice Department stating Iranians used it.
“As cryptocurrencies and technologies designed to facilitate their trade proliferate, companies engaged in the virtual currency economy have become critical gatekeepers in efforts to ensure that U.S. markets are fair, efficient, and secure.
The opportunities and advantages of operating in the United States are legion, but they carry with them the obligation for those businesses to do their part to help in driving out crime and corruption,” U.S. Attorney Damian Williams said.
Benjamin Delo likewise pleaded guilty to the same charge, with both to separately pay a $10 million criminal fine as they await their sentancing.
BitMex has now implemented identification requirements, with it not allowing the withdrawals of assets deposited to the platform prior to the implementation of AML/KYC even for small sums below $500.
Previously they did not enforce identification requirements because they dealt in only bitcoin deposits, and so thought they could leave it to fiat/btc exchanges.
The United States however is establishing identification requirements apply to crypto only exchanges as well, and in execution BitMex is now applying them even for penny sums.
Source: https://www.trustnodes.com/2022/02/25/bitmex-founder-arthur-hayes-pleads-guilty