Matthew Podolsky, Attorney for the United States, announced that HDR Global Trading Ltd., also known as BitMEX, has been fined $100 million for violating the Bank Secrecy Act. The company was found guilty of willfully failing to establish, implement, and maintain an adequate anti-money laundering (AML) and know-your-customer (KYC) program.
Podolsky emphasized the importance of AML and KYC rules in protecting Americans from fraud and preventing money laundering and terrorist financing. He stated, "It is critical that all financial institutions, including cryptocurrency exchanges, comply with these rules to protect our country’s economy and national security. Today’s sentence sends a clear message that companies that willfully violate these rules and refuse to implement AML/KYC programs will face consequences."
BitMEX was founded by Arthur Hayes, Benjamin Delo, and Samuel Reed in 2014. Gregory Dwyer joined as its first employee in 2015. The exchange operated through U.S. offices and serviced U.S. traders but failed to register with the Commodity Futures Trading Commission (CFTC) or establish an adequate AML program.
The executives were aware of their obligations under U.S. law but chose not to comply fully with AML requirements. They required only an email address from customers using BitMEX's services. Despite knowing about U.S.-based customers accessing their platform until at least 2018, they took steps to circumvent U.S. laws like AML and KYC requirements.
Hayes, Delo, Reed, and Dwyer had previously pleaded guilty to violating the Bank Secrecy Act in 2022. BitMEX entered a guilty plea on July 10, 2024.
In addition to the fine, BitMEX received a two-year probation sentence.
Podolsky praised the investigative work of the Federal Bureau of Investigation’s New York Money Laundering Investigation Squad. The prosecution is being managed by Assistant U.S. Attorneys Jessica Greenwood and Thane Rehn from the Office’s Illicit Finance & Money Laundering Unit.