BitMEX Co-Founders Charged With U.S. Rules Violations - WSJ
The co-founders of one of the world’s largest exchanges for trading cryptocurrency derivatives have been charged with violating U.S. anti-money-laundering rules as American authorities ramp up enforcement in one of the world’s least regulated markets.
BitMEX executives Arthur Hayes, Benjamin Delo, Samuel Reed and Gregory Dwyer were charged with one count of violating the Bank Secrecy Act and one count of conspiracy, according to an indictment made public Thursday. Mr. Hayes is known for feuding with bitcoin skeptics such as economist Nouriel Roubini and urging traders to gamble on the most esoteric digital assets.
BitMEX has received more than $11 billion in bitcoin deposits from accounts with U.S. connections since 2014 and has earned more than $1 billion in fees, the Commodity Futures Trading Commission alleged in its own civil lawsuit filed Thursday. The CFTC said BitMEX’s founders “failed to implement the most basic compliance procedures,” such as registering their activity with the CFTC.
Mr. Reed, BitMEX’s chief technology officer, was arrested in Massachusetts on Thursday, authorities said. Messrs. Hayes, Delo and Dwyer remain at large, they added. The defendants were charged in Manhattan federal court.
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