Wednesday, October 5, 2022

BitMEX Founders Plead Guilty To Violation of U.S. Bank Secrecy Act

Bitcoin Mercantile Exchange (BitMEX) founders, Arthur Hayes and Benjamin Delo have admitted to the offense of infringing of the bank secrecy act. According to the Press Release by the U.S. Department of Justice, the exchange knowingly refused to create an Anti-Money Laundering (AML) and a Know-Your-Customers (KYC) scheme.

BitMEX is a Seychelles-based crypto exchange platform that was established in 2014 by Arthur Hayes, Samuel Reed, and Benjamin Delo. Since that time, there had been a series of charges against the firm, mentioning illegal activities that were noticed on the platform.

The founders were charged for the breach of the U.S Bank Secrecy Act (BSA) in October 2020. On Thursday, Hayes and Delo pleaded guilty before John George Koeltl, the U.S. District Court Judge in New York, and consented to pay a penalty of $10 million each for damages as profit that emanated from the offense. The breach is punishable by an ultimate sentence of half a decade. 

Following the court appearance, a representative for Hayes established that Hayes was willingly taking accountability for his actions, and moving forward, as he intends to forget the issue and make amends. Delo’s representative expressed the founder’s regrets over an unsatisfactory identification scheme (KYC) for its customers.

Damian Williams, U.S. Attorney affirmed that there has truly been a high level of proliferation of digital assets and the technologies associated with them. He pointed out that cryptocurrency platforms serve as flag bearers in upholding fairness, efficiency, and security in the financial market of the U.S., and should assist in kicking out fraud from the economy.

Suspected Unauthorized Binance Operations in Israel

Exclusively, the world’s largest digital currency exchange Binance has been asked to put an end to all of its trading activities in Israel. The Capital Market Authority reached the exchange for a documented clarification of its activities in the country but no adequate response was received nor has a request been made to this effect.

The regulatory body told Binance to focus on obtaining a license for its operations as none of the exchange’s activities would be allowed in the country unless it is licensed. The move on Binance echoes the sentiments that watchdogs around the world are not willing to let exchanges operate without adhering to local regulations, and this is expected to form a trend moving forward.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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