BitMEX Pleads Guilty to AML Violations

Published: Jul 11, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

BitMEX has admitted to failing to maintain its anti-money laundering (AML) protocols. The revelation was made by the United States Department of Justice in a recent press release.

Key points:

  • BitMEX pleads guilty to Bank Secrecy Act volation.
  • The exchange operated without an adequate AML program from 2015 to 2020.
  • U.S. authorities allege the platform facilitated money laundering and sanctions evasion.
  • BitMEX’s founders and a key employee previously admitted to federal charges.

Founded in 2014, BitMEX quickly rose to prominence as a leading cryptocurrency derivatives platform. However, the platform quickly fell under the regulatory radar.

Also read: German Government Loses Bitcoin Billionaire Status: Offloads 73.2% Of Seized BTC

BitMEX willfully neglected AML requirements

The key aspect of the case is BitMEX’s willful neglect of AML and Know Your Customer (KYC) requirements. Despite operating in the United States and serving U.S. customers, the exchange maintained only the most rudimentary of verification processes.

U.S. Attorney Damian Williams said: “As BitMEX’s founders and long-time employee admitted in federal court in 2022, the company, one of the leading cryptocurrency derivatives platforms in the world from 2015 to 2020, operated in the United States without any meaningful anti-money laundering program, as required by federal law.

Also read: Elliptic Exposes Huione Guarantee: Uncovers $11 Billion Crypto Scam

Williams also stated that because of this, BitMEX became a playground for large scale money laundering and sanctions evasion schemes.

Users could access the platform’s services with just their email address. The exchange’s leadership, including founders Arthur Hayes, Benjamin Delo, and Samuel Reed, along with early employee Gregory Dwyer, allegedly made conscious choices to prioritize profit over compliance, according to the DOJ. 

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.