The central theses
- BitMEX co-founder Arthur Hayes has been sentenced to 2 years of probation and 6 months of home arrest by a federal courtroom in New York.
- Hayes pleaded responsible to violating the US Financial institution Secrecy Act in February.
- Based on Hayes’ plea deal, the sentence may have been as much as 12 months in jail, with prosecutors asking for added time final week.
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Arthur Hayes was sentenced to 2 years probation and 6 months home arrest for violating the US Financial institution Secrecy Act.
Hayes convicted
A US courtroom in New York has convicted BitMEX co-founder Arthur Hayes of violating the US Financial institution Secrecy Act by failing to adjust to anti-money laundering protocols.
Hayes, who pleaded responsible in February, will serve two years of probation and 6 months of home arrest. Hayes co-founders Benjamin Delo and Samuel Reed, who pleaded responsible alongside Hayes in February, are as a result of be sentenced in June.
BitMEX executives have been accused of providing buying and selling providers to US and worldwide shoppers with out following vital anti-money laundering and know-your-customer procedures. As such, they’ve been accused of aiding and abetting cash laundering.
The decide in that case, Choose John Koeltl, mentioned throughout Hayes’ sentencing that his actions weren’t a matter of mere oversight, however that Hayes understood the implications of failing to observe anti-money laundering procedures:
“He knew these procedures have been vital to forestall his firm from getting used for cash laundering and different unlawful functions… the crime was greater than a easy regulator.”
Hayes’ attorneys weren’t asking for a jail sentence, whereas prosecutors within the case have been asking for greater than a yr. Prosecutors within the case mentioned full crypto compliance could be unsuccessful if founders and executives “imagine there aren’t any vital implications of not complying with the legislation.”
BitMEX was initially accused of failing to implement anti-money laundering (AML) applications over the previous yr. In August, the father or mother firm was fined $100 million as a part of a settlement with the CFTC and FinCEN. Hayes, Delo and Reed have been every personally fined $10 million.
BitMEX continues to work.
Disclosure: On the time of writing this text, the creator of this text owned BTC, ETH and a number of other different cryptocurrencies.
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