The co-founders of cryptocurrency derivatives exchange BitMEX, Arthur Hayes, Benjamin Delo and Samuel Reed, must pay fines of $10 million each as part of the settlement with the CFTC. The decision was made by the Southern District of New York.
In October 2020, the Commission filed a lawsuit against BitMEX and its owners. They were accused of operating an unregistered trading platform and violating the rules regarding the conduct of KYC and AML procedures.
In August 2021, BitMEX settled a civil lawsuit with the US authorities. The company has agreed to pay $100 million.
According to a CFTC press release, the new fines stem from the 2020 lawsuit. In addition to the monetary penalties imposed, Hayes, Delo and Reed were banned from further violating the US Commodity Exchange Act and CFTC regulations. The regulator Commissioner Caroline Pham has added:
“By providing individual accountability for enforcing registration, market conduct, and anti-money laundering rules that are fundamental aspects of the US regulatory framework, the CFTC ensures that BitMEX’s management is held accountable beyond last year’s settlement agreement with corporate defendants.”
