Following charges of breaking the US Bank Secrecy Act, BitMEX co-founder Benjamin Delo was sentenced to 30 months probation without the possibility of home confinement (BSA).
Delo and BitMEX founder Arthur Hayes pled guilty earlier this year to charges brought by the Department of Justice (DOJ) accusing them of “willfully failing” to implement anti-money laundering safeguards at the exchange.
The prosecution against the founders began two years ago, when the DOJ accused Delo, Hayes, and BitMEX’s first formal employee Greg Dwyer of running a “money-laundering platform” between September 2015 and September 2020.
The inability of the exchange to execute AML and Know-Your-Customer processes was essential to the department’s argument in the case for their BSA violations.
If the case had gone to trial, the maximum term for BSA offenses would have been five years, but the couple were able to arrange a plea agreement in which the DOJ argued for a 6-12 month prison sentence.
Hayes and Delo agreed to pay a $10 million fine in a parallel civil lawsuit filed in February with the Commodity and Futures Trading Commission, which was also part of the arrangement with the DOJ. Hayes had already received a six-month home detention term and two years of probation for his role.
According to a representative for the New York-based law firm Smith Villazor LLP, which is representing Delo, the court rejected the government’s “cynical attempt to exaggerate the seriousness” of the BSA claim.
The spokesperson said:
“Today’s sentence of probation recognized that this case involved a compliance lapse that led to a regulatory violation and nothing more. The government’s campaign – both in the courtroom and in the press – to malign Ben with highly inflammatory and misleading language concerning Ben’s conduct gained no traction with the court.”
Delo has finally settled all regulatory disputes connected to BitMEX, according to the spokeswoman, with the recent settlement with the CFTC.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Patrick
CoinCu News
Explore why Qubetics, Bitcoin, and AAVE are the Best Coins to Join Now. Dive into…
MicroStrategy buys 15,350 BTC; Ripple launches RLUSD; Lido exits Polygon; BTC drops post-ATH; reduced liquidity…
Bybit Proof of Reserve reveals BTC holdings at 50,412 (-8.55%), ETH at 525,641 (+8.11%), and…
Key Points: Bitcoin Spot ETF Inflows totaled $449M, led by BlackRock’s $1.45B contribution. Ethereum Spot…
Discover the Best New Meme Coins to Join for 2025. BTFD Coin's price rollback offers…
Discover how DTX Exchange's historic achievement of 100,000 transactions per second on a layer-1 blockchain…
This website uses cookies.