Former BitMEX Executive Pleads Guilty For the Bank Secrecy Act Violation

Another well-reputed executive is categorized among the other co-founder of BitMEX (a crypto exchange) after being found guilty by the United States District Court for the Southern District of New York. The respective case has been running for a couple of years, with the management of BitMEX being charged for infringing the Bank Secrecy Act of the United States.

Ex-Executive of BitMEX Admits Guilt for Infringing the Bank Secrecy Act

On Monday, per the Wall Street Journal, Gregory Dwyer (BitMEX’s one-time business head) acknowledged being guilty in court, of infringing the Bank Secrecy Act. Hence, as a fine, an amount of up to $150,000 is to be paid by Dwyer. Damian Williams, the Manhattan Attorney, remarked on the respective advancement and stated that the respective plea signifies that the workers at the crypto exchanges cannot deliberately disrespect their obligations like the founders in line with the Bank Secrecy Act.

The entirety of the founder mentioned by Williams has in advance been pleaded guilty. Previous CEO named Arthur Hayes as well as Ben Delo (a co-founder) admitted that they were guilty, on 24th February this year, whereas it took two more weeks for Samuel Reed (the 3rd co-founder) to admit his guilt. A sentence of up to 2 years of probation has been ordered by the judge for Hayes.

BitMEX Did Not Comply with KYC and AML Requirements

Delo got probation for 30 months while Reed is to go through imprisonment for 5 years. Reed solely admitted to recompense a fine of $10M, whereas Delo and Hayes will jointly pay the same sum in fine. The charges raised against Dwyer and the three co-founders of BitMEX were submitted in 2020. The exchange platform was accused by the petitioners of its wrong withdrawal from the market of the United States because no significant efforts had been carried out by it to stop the U.S.-based customers from doing the sign-ups.

Apart from this, the exchange had additionally been accused of operating as a money-laundering venue without having required to Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. In the words of the Attorney, Dwyer provided his assistance in the failure of BitMEX to institute KYC or AML programs notwithstanding keen compliance with the regulatory developments of the United States, clarifying the legal obligation of the company to do so in the case of running within the U.S. jurisdiction, which was done by it.

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