The co-founder and former chief government of the cryptocurrency exchange BitMEX have been sentenced to six months of residence arrest after pleading guilty to violating the US Bank Secrecy Act, US prosecutors said.
Crypto exchange Bit MEX co-founder gets 6 months house arrest for US charges
Arthur Hayes, 36, will additionally pay a $10 million fine and serve two years of probation following his residence arrest for failing to establish an anti-money laundering software at BitMEX, which he founded with Benjamin Delo and Samuel Reed in 2014.
Hayes was once sentenced in federal court in Manhattan on Friday.
“While constructing a cryptocurrency platform that profited him millions of dollars, Arthur Hayes willfully defied US regulation that requires businesses to do their phase to help in stopping crime and corruption,” Damian Williams, the top federal prosecutor in Manhattan, stated in a statement.
- Prosecutors had sought a “significant” prison term, announcing a $10m fine was once not ample to deter other cryptocurrency agencies from similar behavior.
- Hayes’ attorneys had sought probation, without domestic detention.
- A spokesperson for Hayes declined to comment on the sentence.
- Delo and Reed have pleaded responsible and await sentencing.
The three have been charged in 2020 with failing to implement a “know your customer” requirement as required through federal law.
Prosecutors said BitMEX was once “in effect a money-laundering platform,” and Hayes did nothing after studying in 2018 allegations that BitMEX was being used to launder proceeds from a cryptocurrency hack.
BitMEX final year agreed to pay up to $100m to settle separate costs for unlawfully accepting customer money to trade cryptocurrency except being registered, and failing to conduct consumer due diligence. You May Also Search for IT exports to touch $5bn mark in the next fiscal year, says Aminul Haq | 2022