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Tag: BitMEX

  • BitMex co-Founder spared from Prison

    BitMex co-Founder spared from Prison

    In the US, BitMEX fellow benefactor and previous CEO Arthur Hayes was condemned to two years’ probation and will spend the initial half-year of his sentence in home constrainment.

    As detailed, Hayes and two other BitMEX fellow benefactors Benjamin Delo and Samuel Reed, conceded to abusing the Bank Secrecy Act by adamantly neglecting to layout, carry out, and keep an enemy of illegal tax avoidance program at the trade. They each consented to pay a USD 10m lawbreaker fine independently.

    Permitting Hayes to avoid jail would make an impression on him that the expense of carrying on with work is just a fine, and he could keep on abusing the law for immense sums and pay any fine, Assistant US Attorney Samuel Raymond said under the steady gaze of US District Judge John Koeltl in Manhattan articulated the sentence, per Bloomberg.

    Hayes’ legal advisor, James Benjamin, said that examiners were attempting to put forth the defense a mandate on conceptual standards they try to support, seeking a draconian sentence to justify US strategy, per the report.
    In the interim, the previous CEO apparently let the appointed authority know that he took “full liability” for his part in BitMEX’s inability to carry out the actions and he’s “prepared to turn the page and begin once more.”
    Delo is booked to be condemned in June and Reed in July. In the interim, BitMEX’s previous head of business improvement Gregory Dwyer has argued not liable and is set for preliminary in October, per the report.

  • BitMEX going green with zero net carbon emissions

    BitMEX going green with zero net carbon emissions

    The cryptocurrency market has been in a whirlwind largely because of the high energy consumption of Bitcoin. Tesla CEO Elon Musk announced to not accept Bitcoin as a mode of payment amidst environmental concerns which caused a market crash reminiscent of the 2018 crash. It had put a lot of things in perspective for the stakeholders of the cryptocurrency sphere.

    BitMEX, one of the largest cryptocurrency exchanges, had announced to offset its carbon footprint by donating $0.0026 of every $1 received as fees from users. The recipient of the donation has yet to be decided as the exchange researches into suitable partners. BitMEX furthers that it has a responsibility to take a step in this direction. The exchange also stated that this is not the solution but it is a step in the right direction.

    The exchange had been under a lot of scrutiny with the executives currently under trial. The three former executives of the exchange namely CEO Arthur Hayes, co-founder Benjamin Delo, and chief technology officer Samuel Reed are accused of evading the anti-money laundering laws as well as violating the Bank Secrecy act.

    The United States Commodity Futures Trading Commission had been investigating the cryptocurrency exchange since 2019. The CFTC had suspicions that the exchange had been operating as an illegal derivates platform. The CFTC had also given ample time to the exchange to strengthen their KYC requirements in order to exclude customers from the United States as it had been operating under a jurisdiction outside the United States.

    Developments had been made in the trial of the three executives as the New York district judge John Koeltl announced the trial date set on March 28th, 2022. If convicted, the executives can face up to five years in jail and a penalty of $250,000.

  • BitMEX executives trial date is set for March 2022

    BitMEX executives trial date is set for March 2022

    New York District Judge John Koeltl has set the trial for former BitMEX executives CEO Arthur Hayes, co-founder Benjamin Delo, and chief technology officer Samuel Reed to be held on 28th of March 2022. The head of business development Gregory Dwyer also has to face charges but has not yet appeared. The trial is going to take place eighteen months after the charges were initially filed.

    Defense motions are due to be filed in June while other pretrial motions are expected to be filed by September 2021. The platform had been operating in a jurisdiction outside the United States because of lax regulation – as bragged by an executive – but had also been offering its services to American citizens.

    The three former executives of the cryptocurrency exchange, BitMEX, are accused of evading the anti-money laundering laws as well as the violation of the Bank Secrecy Act. The United States Commodity Futures Trading Commission had charged BitMEX with illegally operating as a derivatives platform. The commission further believes that the crypto exchange has been offering illegal leveraged trading services ever since its launch in 2014. The CFTC investigation has been going on since 2019 and the crypto exchange was given ample time to exclude Americans from its platform through the “Know Your Customer” requirements – which it failed to do so.

    A civil enforcement action was filed against the three executives who are said to own and operate the exchange as well as five entities, namely: HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited, and HDR Global Services (Bermuda) Limited (BitMEX).

    Apart from civil charges, the four executives are also accused of conspiring to violate and violating the Bank Secrecy Act by the United States Department of Justice. The conviction can land the executives in prison for a maximum of five years with a heavy penalty of $250,000.