The United States Department of Justice (DOJ) has recently imposed a $100 million fine on BitMEX, a Seychelles-based crypto derivatives exchange, for violating anti-money laundering (AML) laws. The penalty stems from BitMEX’s failure to implement robust AML and know-your-customer (KYC) protocols.
BitMEX to Pay $100 Million Fine
Court documents reveal that BitMEX’s senior executives, including founders Arthur Hayes, Benjamin Delo, Samuel Reed, and Gregory Dwyer, were aware of the exchange’s obligations to comply with the country’s AML regulations. Despite this, they disregarded these requirements, allowing U.S. customers to trade on the platform with minimal verification.
Notably, the court’s verdict follows the guilty pleas of BitMEX’s executives in 2022 for violating the Bank Secrecy Act. Further investigation revealed that BitMEX had also provided false information to a bank to facilitate transactions, effectively bypassing the state’s financial regulations. In addition to the fine, the exchange’s violation attracted two years of close supervision.
While commenting on the case, the U.S. attorney, Matthew Podolsky, stated that rules against money laundering and terrorist financing are crucial to protecting Americans and the country’s economy. He further emphasized that all financial institutions, including crypto exchanges, must follow these rules or prepare to face consequences.
Meanwhile, several exchanges have been charged with similar violations. Binance, the world’s largest crypto exchange, paid a $4.3 billion fine after pleading guilty to federal charges related to violating anti-money laundering and sanctions laws. The exchange’s co-founder, Changpeng Zhao, also pleaded guilty, was sentenced to four months in prison, and resigned as CEO.
BitMEX Co-Founder Predicts Market Downturn
Before the court verdict, Arthur Hayes, co-founder of BitMEX, cautioned against overly optimistic expectations about President-elect Donald Trump’s impact on crypto regulatory changes. As a result, Hayes predicted a sharp downturn in the crypto market near Trump’s inauguration, followed by a surge-driven boom phase in 2025.
In line with the prediction, Hayes’ investment fund, Maelstrom, plans to reduce specific holdings initially and reacquire key assets at more favorable prices within the first half of 2025. He also anticipates that the market will peak in mid-March 2025, driven by US dollar liquidity dynamics, before entering a corrective phase.
The crypto community is eagerly waiting to see if Hayes’ prediction will come true, especially with the inauguration just a few days away.
