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BitMEX Hit With $100 Million Fine for BSA Violations and Regulatory Failures
By Peter Macharia
January 15, 2025 – The cryptocurrency exchange platform BitMEX has been ordered to pay a staggering $100 million fine for violating the Bank Secrecy Act (BSA) over a period of five years. This move follows BitMEX’s plea of guilt in July 2024, acknowledging its role in disregarding regulations aimed at preventing money laundering.
According to reports, BitMEX failed to implement necessary Know-Your-Customer (KYC) checks, allowing U.S. users to trade on the platform despite lacking approval from the U.S. Commodity Futures Trading Commission (CFTC). This blatant disregard for financial laws resulted in an 11.5% share of users being based in the United States.
The fine is part of a settlement between BitMEX and the U.S. Department of Justice, following its guilty plea earlier this year. The exchange’s parent company, HDR Global Trading Inc., will also be placed under a two-year probationary period as a result of these regulatory failures.
In a statement, BitMEX explained that the $100 million fine is a direct consequence of the actions taken by its founders, Arthur Hayes, Samuel Reed, and Benjamin Delo. These individuals have already admitted to operating the platform without implementing essential KYC checks, putting millions at risk through their reckless decisions.
The U.S. government has continued to crack down on cryptocurrency exchanges that fail to comply with financial regulations. This fine serves as a stern warning to other platforms operating in the space, emphasizing the importance of adhering to strict anti-money laundering (AML) and Bank Secrecy Act requirements.
It is worth noting that this development follows recent regulatory actions against prominent crypto entities, including Robinhood’s $45 million settlement with the Securities and Exchange Commission over securities violations.
Source: www.crypto-news.net
