The founder of Bitmex has been ordered to pay $30 million for “illegal operation of a cryptocurrency derivatives trading platform and anti-money laundering violations.” Arthur Hayes, Benjamin Delo and Samuel Reed must each pay $10 million.
Bitmex founder fined $30 million
The Commodity Futures Trading Commission (CFTC) announced Thursday that the U.S. District Court for the Southern District of New York has ordered the founders of Bitmex to pay a total of $30 million for “the illegal operation of a cryptocurrency derivatives trading platform and anti-money laundering violations.” “
The CFTC noted that the three Bitmex co-founders are Arthur Hayes, Benjamin Delo and Samuel Reed, who clarified:
The orders demand civil penalties of $10 million each and bar Hayes, Delo and Reed from further violations of the Commodity Exchange Act (CEA) and CFTC regulations.
The orders stem from a CFTC complaint filed in October 2020 against Bitmex and its three founders.
The CFTC settled a lawsuit against Bitmex in August 2021 that “included a $100 million civil penalty and injunctions for future violations of the CEA and CFTC regulations,” the derivatives regulator detailed.
The CFTC noted that the U.S. Attorney’s Office for the Southern District of New York has also “indicted Hayes, Delo, Reed, and others for knowingly causing Bitmex to violate the Bank Secrecy Act and conspiracy to commit the same crime,” elaborating:
Hayes, Delo and Reed have pleaded guilty to count against one of their charges.
The derivatives watchdog added that the three were scheduled to be sentenced in the coming weeks.
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