BitMEX, owned by HDR Global Trading Limited, dismissed the latest charge of the Bank Secrecy Act (BSA) on the platform by addressing its previous settlements with the CFTC and FinCEN on a similar issue, improved compliance, and founders paying penalties.
What’s new is that US Attorney Damian Walliams published a notice on July 10 disclosing that BitMEX has pleaded guilty to violating BSA between 2015 and 2020. The notice added that the platform willingly featured a flaunted AML to facilitate money laundering through its trading platform. The authority alleges the platform allowed users to trade by requiring an email only. That is insufficient to prove a person’s identity.
BitMEX sees the DOJ’s charge as an old issue
BitMEX sees this as a past issue since it settled a similar charge in 2022 and found nothing new. The exchange revealed that its founders, Arthur Hayes and Benjamin Delo, resolved the case by paying 10 million. Nevertheless, it now seeks an expedited sentencing hearing to mitigate further fines on the same charge.
The official blog post by BitMEX, reads:
We have accepted the BSA charge, will seek an expedited sentencing hearing, and argue that no further fine should be imposed, given the substantial amounts already paid by our founders under the BSA charges brought against them, and under our no admission/no denial settlements with the CFTC and FinCEN in 2021.
Speaking on sanctions compliance, BitMEX revealed that it significantly improved its compliance standards and platform operations after being previously hit by the BSA charge. It said users, exchange partners, and regulatory stakeholders have long recognized this improvement.
BitMEX further highlighted the implementation of a best-in-class verification program in 2020. Also, an independent auditor verified it twice to ensure no US person could trade on the platform. Likewise, the platform ensures the auditing of its AML and KYC protocols separately across AML regimes flagged by major financial centers.
Related: Crypto scandal: Huione $11B illicit marketplace exposed
