CryptoWallCity vs MEXC Exchange

US Court Orders BitMEX Founder to Pay $30 Million for Illegal Trading

A federal judge has ordered the three BitMEX co-founders to pay a total of $30 million for operating an illegal crypto derivatives platform and violating money laundering rules, the Exchange Commission said. Commodity Futures (CFTC) said in a statement on Thursday.

The U.S. District Court for the Southern District of New York ordered BitMEX platform founders Arthur Hayes, Benjamin Delo and Samuel Reed each to pay a $10 million fine in connection with the CFTC allegation that they conducted illegal business with US customers. The order follows a February resolution on a related Justice Department lawsuit, whereby all three pleaded guilty to violating the Bank Secrecy Act for operating a cryptocurrency exchange and derivatives trading that do not have adequate controls against money laundering.

In 2020, the US derivatives regulator for the first time sanctioned the company and its founders for illegally accepting orders and funds from US customers to trade cryptocurrencies, including derivatives on Bitcoin, Ether and Litecoin.

This is an example of how the committee will take decisive action as appropriate to ensure that digital asset derivatives trading platforms are compliant with the Commission and Ethics Regulations,” President Rostin Behnam said in a statement.

The CFTC said the co-founders failed to implement and enforce effective controls to prevent or detect illegal BitMEX behavior. Taylor Bossung, a spokesman for the company, said that BitMEX is aware of these developments but will not comment on legal matters to which the company is not directly involved. “It is business as usual and we are now focused on launching the BitMEX exchange in the coming weeks and expanding the platform further to serve our customers,” Bossung said.