Cryptocurrency derivatives exchange BitMEX has responded to recent claims from the U.S. Department of Justice that it violated the Bank Secrecy Act (BSA)in the country, labelling it as “old news.”
According to a press release published on July 10, 2024, US Attorney Damian Williams claimed that BitMEX had acknowledged providing crypto trading services without a robust Anti-Money Laundering (AML) program.
In defence, BitMEX emphasized that its founders, Arthur Hayes and Benjamin Delo, had previously pleaded guilty to the violation and settled their fines in 2022.
According to the exchange, the founders confessed to “willfully failing to establish, implement, and maintain an AML program” at their exchange. As part of the settlement, Hayes and Delo agreed to pay $10 million in criminal fines each for the BSA violations. The exchange claimed that it implemented verification systems aimed at preventing US citizens from accessing its services. The company also underscored that its Know Your Customer (KYC) and AML programs have undergone independent audits.
BitMEX stated that it expects no further fines from the US Department of Justice (DOJ), and it will try to seek an expedited sentencing hearing while asserting that no further charges will be pursued.
“We have accepted the BSA charge and will seek an expedited sentencing hearing. We will argue that no further fine should be imposed, given the substantial amounts already paid by our founders under the BSA charges and our no admission/no denial settlements with the CFTC and FinCEN in 2021,”
the exchange’s statement read.
BitMEX also claims that this new charge would have no impact on its business operations.
In the United States, supporting money laundering is considered a serious offence, often punishable by a maximum of five years in prison.
The US DOJ recently charged two high-ranking members of the Mexican drug cartel La Nueva Familia Michoacana over allegations of using cryptocurrency for money laundering. The agency indicted cartel leaders Rodolfo Maldonado-Bustos and Euclides Camacho-Goicochea on charges of conspiring to distribute and import heroin into the United States and using cryptocurrency to mask their illicit financial activities.
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