The Court Ordered BitMEX Co-Founders To Pay A Total Of $30 Million.

The founders of crypto exchange BitMEX have been fined a total of $30 million by the Commodity Futures Trading Commission (CFTC). 

In October 2020, US regulators filed a lawsuit against BitMEX and its executive team. BitMEX facilitated swap trading and processing without the appropriate CFTC licensure, according to a settlement reached in August 2021. In addition to failing to register with the CFTC, the firm failed to undertake adequate anti-money laundering and know-your-customer checks, according to the ruling.

The firm was fined $100 million and prohibited from marketing derivatives products in the United States as a result of the judgment.

Arthur Hayes, Benjamin Delo, and Samuel Reed, co-founders of the company, have now been ordered by the futures regulator to pay $10 million apiece for violating federal commodities regulations.

It also prevents them from breaking the Commodity Exchange Act or CFTC regulations again.

In addition to the civil allegations, the co-founders are also facing criminal prosecution. Hayes, Delo, and Reed were indicted by the US Attorney’s Office for the Southern District of New York on accusations of knowingly breaking the Bank Secrecy Act. Hayes has requested probation with the ability to travel overseas ahead of his sentencing hearing, while the other two have filed guilty pleas.

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