A US court has ordered the leading crypto exchange BitMEX to pay a $100 million fine for violating US anti-money laundering law.
On January 15, US District Judge John Koeltl imposed the penalty after BitMEX pleaded guilty in July to violating the Bank Secrecy Act, which mandates verifying customer identities to prevent money laundering. Moreover, Judge Koeltl sentenced BitMEX to two years’ probation. The co-founders of the exchange, Arthur Hayes, Samuel Reed and Benjamin Delo were charged for allowing illegal trades BitMEX and hence, were sentenced in 2022 to probation.
BitMEX fined for US AML Laws Violation
Global cryptocurrency exchange BitMEX fined $100 million for violating Bank Secrecy Acthttps://t.co/eU2zem7JRP
— US Attorney SDNY (@SDNYnews) January 15, 2025
Attorney for the United States Matthew Podolsky said: “Anti-money laundering and know-your-customer rules protect Americans from fraud, combat money laundering, and prevent the financing of terrorist activity. It is critical that all financial institutions, including cryptocurrency exchanges, comply with these rules to protect our country’s economy and national security. Today’s sentence sends a clear message that companies that willfully violate these rules and refuse to implement AML/KYC programs will face consequences.”
In response to the charges, BitMEX wrote in its blog, “We stand firm by the statement that the BSA charge is old news (as made in our statement made back in July 2024). We are glad to move past this matter, and look forward to continuing to focus on innovation and delivering the best products and services to our users without further distraction.”
The firm also expressed disappointment by the additional financial penalty but emphasized that it is significantly lower than the amount the Department of Justice has been pursuing for over three years, which initially included a demand for over USD 200 million to settle a plea deal, followed by a penalty of approximately USD 420 million.
Back in 2021, the Treasury department had accused BitMEX of conducting at least $209 million in transactions “with known darknet markets or unregistered money services businesses.”
Also Read: 18 Charged Globally for Crypto Fraud and Market Manipulation
