BREAKING: BitMEX Fined $100 Million For US Money-Laundering Violations
Federal Judge John G. Koeltl guided BitMEX will pay a $100 million fine, the latest development in an ongoing legal dispute over money laundering violations in the United States.
BitMEX faces major legal setback
The legal challenge facing BitMEX stems from activity between 2015 and 2020, when the exchange reportedly failed to comply with the U.S. Bank Secrecy Act (BSA). The BSA requires financial institutions to assist government agencies in detecting and preventing money laundering.
Although BitMEX’s lawyers argued that the previous $110 million fine and the exchange’s founder’s earlier guilty plea were sufficient punishment, Judge Koeltl deemed it necessary to impose additional financial penalties.
In 2022, BitMEX founders Arthur Hayes and Benjamin Delo pleaded guilty to similar charges and agreed to pay a $10 million criminal penalty.
Exchange implements enhanced KYC and AML measures
in a statement After the ruling, the company expressed disappointment with the additional fine but noted that the amount was well below the Department of Justice’s (DOJ) original request, which exceeded $200 million during plea negotiations and rose to approximately $420 million during sentencing discussions.
The exchange emphasized its commitment to compliance and said it had made significant improvements to its operations since the period of the BSA charges.
This includes implementing a strong user verification program and comprehensive know-your-customer (KYC) and anti-money laundering (AML) systems. BitMEX claims these advancements have been recognized by users, partners, and regulatory stakeholders.
“We maintain that the BSA accusations are old news,” the company said in a statement. BitMEX said it hopes to overcome these legal challenges and focus on providing innovation and services to users.
The exchange aims to maintain its position as a leading, trustworthy and financially stable cryptocurrency derivatives platform, continuously launching new products and innovations to meet user needs.
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