Federal judge John G. Koeltl has directed BitMEX to pay a $100 million fine, representing the latest development in an ongoing legal dispute regarding money laundering infractions in the US.
BitMEX Faces Major Legal Setback
The legal challenges for BitMEX stem from activities between 2015 and 2020, during which the exchange reportedly failed to adhere to the United States Bank Secrecy Act (BSA). The BSA requires financial institutions to assist government agencies in detecting and preventing money laundering.
Despite BitMEX’s attorneys arguing that a previous $110 million fine and earlier guilty pleas from the exchange’s founders were sufficient punishment, Judge Koeltl deemed additional financial penalties necessary.
In 2022, BitMEX’s founders, Arthur Hayes, and Benjamin Delo, admitted guilt to comparable charges, with both consenting to pay a $10 million criminal penalty.
Exchange Implements Enhanced KYC And AML Measures
In a statement following the ruling, the company expressed disappointment over the additional financial penalty but noted that the amount was significantly lower than the Department of Justice’s (DOJ) initial demands, which exceeded $200 million during plea negotiations and rose to approximately $420 million during sentencing discussions.
The exchange emphasized its commitment to compliance, stating that it has made significant improvements to its operations since the period covered by the BSA charges.
This includes implementing a robust user verification program and comprehensive Know Your Customer (KYC) and Anti-Money Laundering (AML) systems. BitMEX asserts that these advancements have been recognized by users, partners, and regulatory stakeholders.
“We stand firm by the statement that the BSA charge is old news,” the company remarked in its statement. BitMEX expressed a desire to move past these legal challenges and focus on innovation and service delivery for its users.
The exchange aims to maintain its position as a leading, trusted, and financially stable crypto derivatives platform, continuously launching new products and innovations to meet user demands.
Featured image from DALL-E, chart from TradingView.com