Key Takeaways
- Three BitMEX founders—Hayes, Delo, and Reed—received pardons from President Trump.
- The co-founders of BitMEX were indicted in 2020 for violating the Bank Secrecy Act.
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President Donald Trump on Thursday issued presidential pardons to BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed, according to a new report from CNBC.
The trio established BitMEX in 2014, with Hayes as CEO. The Seychelles-based platform has become a key player in crypto derivatives trading, specializing in perpetual contracts and futures.
In October 2020, the co-founders of BitMEX were indicted by US authorities for violations of the Bank Secrecy Act (BSA). They were claimed to have failed to implement adequate anti-money laundering (AML) measures, including the establishment of a “know your customer” (KYC) program.
Authorities contended that BitMEX’s operational model allowed users to trade anonymously, effectively turning the platform into a potential conduit for illicit financial activities, including money laundering and sanctions evasion.
In May 2022, the court mandated both a $10 million civil monetary penalty for each and a prohibition against future violations of the Commodity Exchange Act and regulations established by the Commodity Futures Trading Commission (CFTC).
Hayes received a two-year probationary sentence. Delo was sentenced to 30 months of probation, and Samuel Reed to 18 months. Their leadership roles ended in 2020 due to legal complications, with Vivien Khoo stepping in as interim CEO.
Shortly after his inauguration, Trump granted a pardon to Ross Ulbricht, fulfilling a key campaign promise.
The founder of the Silk Road marketplace was sentenced in 2015 to double life imprisonment plus 40 years without the possibility of parole on charges including drug trafficking, money laundering, and computer hacking.
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