Founders of BitMEX Penalised for Their Inefficacy in Preventing Money Laundering

Arthur Hayes, Benjamin, Delo, and Samuel Reed – the co-founders of BitMEX charged for violating the US money laundering laws, which resulted in a significant decrease in their Bitcoin price.

The three were indicted in New York where federal prosecutors claim that the company served American clients, but defied the banking laws in the US. Hayes stated that they incorporated exchanges in Seychelles because bribing the authorities was not a problem there. According to the indictment revealed on Thursday, the bribe was just the cost of coconut.

The company enabled investors to leverage their bets by a factor of 100 which became the reason for its fame. The largest cryptocurrency, Bitcoin, fell by 2.4 percent to $10,450 after the charges were announced.

On the other hand, the spokesperson of BitMEX strongly disagrees with the charges and claims that they have been complying with US laws since day 1. BitMEX is never in a loss since it matches the buyers and sellers of the future. Hence, Hayes always makes profits no matter which way crypto moves.

Arthur aggressively promoted BitMEX on different television shows and in 2018, the company rented three Lamborghinis for a Bitcoin conference in Manhattan. It was success near Hayes after the media coverage he received.

All founders have been charged for conspiring to violate the Bank Secrecy Act and violating the act. Both charges carry a maximum of five years of imprisonment. Head of Business Development, Gregory Dwyer, is also facing the same charges.

BitMEX has been the global cryptocurrency market leader for months and now, it is number two. CFTC registration is mandatory to serve US clients and ensure that the platform is not used for any illegal purposes like money laundering. The prosecution says that the founders chose to go against the laws.

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