BitMEX’s Ex-CEO Arthur Hayes Faces Two Year Probation

Putting an end to the long-awaited ruling linked with the money laundering operations over the crypto exchange called BitMEX, one of the 4 New York-based federal-level district courthouses reportedly announced the decree of probation for a couple of years along with home detention of up to 6 months to Arthur Hayes (the ex-CEO and founder of the exchange).

The BitMEX, along with the other co-founders of the exchange – taking into account Samuel Reed and Benjamin Delo – and Gregory Dwyer (the initial non-employee of the firm), requested guilty on 24th February to the infringement of the BSA (Bank Secrecy Act, acknowledging to deliberately no constructing, executing, as well as sustaining an AML (Anti-Money laundering) mechanism at BitMEX.

Requesting to be guilty of favoring money laundering counts to be a huge offense, usually resulting in an extreme judgment of up to 5 years in prison. Nonetheless, both Delo and Hayes made their requests for being guilty to the offense in advance of the trial date in March and had consented to recompense $10M each in criminal penalties. On 7th April, it was reported that Hayes did a volunteer surrender to the Hawai-based United States authorities 6 months following the first charges were leveled by the prosecutors.

Responding to the respective charges, Hayes’ lawyers mentioned that the volunteer appearance of Mr. Hayes in front of the court is something that could be assistive in the elimination of the unwarranted charges. As per the indictment, court submissions, as well as the statements that were spoken in the court, the court released Hayes following the posting of an amount of $10M by him as a bail bond in advance of the impending case proceedings within New York.

Nevertheless, the prosecutors belonging to the Money Laundering and Transnational Criminal Enterprises Unit discovered that the entrepreneurs were guilty of not imposing any AML protections, taking into account not following the KYC (know-your-customer) standards. Notwithstanding the forthcoming probability of experiencing jail time, due to the accusations he is also sentenced to home confinement. Apart from this, he consented to recompense nearly $10M as a fine.

Discharging the myth linked to the convenience in money laundering with the use of cryptocurrency, an exclusive analysis brings to the front that the crypto as well as blockchain technology is capable of trailing back the crimes related to finance. Though many projects across the ecosystem of crypto are going through targeted assaults, malicious people keep on endeavoring to cash out the swindled funds.

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