BitMEX Faces $100 Million Fine Over US Money-Laundering Charges

By: Eliza Bennet

Cryptocurrency exchange BitMEX has been ordered to pay a $100 million penalty, marking the latest chapter in its ongoing legal battles over alleged U.S. money-laundering violations. A federal judge confirmed the judgment against BitMEX, stemming from the exchange's reported failure to comply with the United States Bank Secrecy Act (BSA) between 2015 and 2020. The BSA mandates financial institutions to support government efforts in identifying and preventing money laundering activities.

This decision follows a previously settled $110 million fine and guilty pleas by BitMEX’s founders, Arthur Hayes and Benjamin Delo, who also paid a $10 million criminal penalty each in 2022. Despite the hefty fines already levied, the court, led by Judge John G. Koeltl, found additional consequences to be warranted. BitMEX expressed its disappointment with the verdict, noting that the imposed amount was significantly less than what the Department of Justice initially proposed, which ranged from $200 million to over $420 million during negotiations.

In response to the ruling, BitMEX highlighted its dedication to regulatory compliance, underscoring the robust user verification program and sophisticated Know Your Customer (KYC) and Anti-Money Laundering (AML) measures they have since implemented. The company stated that these measures have received positive recognition from users, partners, and regulatory parties.

BitMEX aims to put these legal issues in the past as it continues to innovate and offer valuable services to its users. The exchange remains committed to being a leading and reliable crypto derivatives platform, introducing new products and advances to meet evolving market demands.