BitMEX Co-founder Arthur Hayes surrenders to US authorities and will face trial in the US according to reports that we have in our latest cryptocurrency news today.
Hayes was charged with violating the Bank Secrecy Act with conspiracy to evade money laundering regulations. The BitMEX Co-founder Arthur Hayes surrendered to the US authorities and now he is awaiting trial. Hayes was living in Singapore and flew to Hawaii to turn himself in before being released on a $10 million bail due to his deal with the US prosecutors. The former CEO will face trial in New York along with Benjamin Delo and Samuel Reed. The three were accused of violating the Bank Secrecy Act which requires institutions to take measures and prevent money laundering.
Another person who was ahead of business operations Gregory Dwyer is in Bermuda and not cooperating with the authorities while they are looking for his extradition. BitMEX is an exchange for trading crypto derivatives like BTC options and according to CoinMarketCap, it is the eighth-most popular exchange with $4.4 billion in trading volume over the past day.
US prosecutors think that some of the popularity of the exchange could stem from their trading policies that were faulty. The indictment from October read:
“As a result of its failure to implement [anti-money laundering] and [know-your-customer] programs, BitMEX made itself available as a vehicle for money laundering and sanctions violations.”
As previously reported, Ben Delo is a British citizen who was wanted on charges of flouting US anti-money laundering laws and he previously negotiated the surrender agreement with the federal prosecutors in coordination with the Federal Bureau of Investigation and US customer and Border Patrol as he flew to the US where he was arraigned. At the arraignment hearing, he pled not guilty to failing to implement anti-money laundering programs at the exchange as well as conspiracy to violate the Bank Secrecy Act as he posted $20 million in bond and is allowed to return to the UK and await trial. Delo is the second BitMex executive to be arraigned on these charges as CTO Samual Reed was arrested back in October and released on bail.
For example, the prosecutors contend that Delo communicated personally with BitMEX customers who self-identified as Iranian but Iran is a subject of US sanctions. After repeated notifications, the prosecutors alleged that the group of defendants failed to implement an AML program.