BitMEX Admits to Violating US Banking Laws

Summary:
Seychelles-based crypto exchange BitMEX has admitted guilt to violating the US Bank Secrecy Act (BSA) from 2015 to 2020 by not implementing know-your-customer (KYC) protocols, facilitating anonymous transactions and illicit activities. Attorney Damian Williams highlighted that BitMEX operated without a meaningful anti-money laundering (AML) program during this period. This follows the 2022 guilty pleas of BitMEX’s co-founders Arthur Hayes, Samuel Reed, Benjamin Delo, and their first employee Gregory Dwyer on similar charges. The Department of Justice (DoJ) seeks to hold the exchange accountable to prevent further AML violations. The DoJ’s press release indicated the exchange’s senior executives knowingly allowed US customers to access the platform, bypassing ineffective policies. Additionally, BitMEX allegedly misled a bank about its AML practices to secure an account, funneling millions in crime-associated funds into the US financial system.