EX BitMEX CEO finally surrenders, will face trial in the US.
BitMEX co-founder and ex-CEO Arthur Hayes has been charged with violating the Bank Secrecy Act.
Arthur Hayes, who served as CEO of BitMEX up until he was charged last October with conspiracy to evade money laundering regulations, has finally surrendered to US authorities to face trial. A report from Bloomberg stated.
Hayes, who had been living in Singapore for a while, flew to Hawaii to turn himself in before being released on $10 million bail as a part of a prearranged deal with US prosecutors.
The former CEO will eventually face trial in New York together with his co-founders Benjamin Delo and Samuel Reed. The three will stand accused of violating the Bank Secrecy Act, which will require financial institutions to take measure to prevent money laundering.
Another person involved is head of business operations Gregory Dwyer (who is now on a leave of absence), is in Bermuda and has reportedly not been cooperating with US authorities. The US is now seeking his extradition.
BitMEX is an exchange for trading cryptocurrency derivatives, like Bitcoin options. CoinMarketCap states that it is the eight-most-popular crypto derivatives exchange, having registered $4.4 billion in trading volume in the past 24 hours.
US prosecutors speculate that some of BitMEX’s popularity could stem from trading policies that have allegedly put it afoul of US law.
“As a result of its failure to implement [anti-money laundering] and [know-your-customer] programs, BitMEX made itself available as a vehicle for money laundering and sanctions violations,” the indictment from October reads.
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