BitMEX Fined $100 Million for Violating US Money-Laundering Laws
HDR Global Trading, BitMEX’s parent company, faces a $100M penalty for BSA violations, while its founders previously settled separate charges for $10M each.
BitMEX found guilty of violating US money-laundering laws between 2015 and 2020.
The exchange asserts its significant compliance reforms since the violations occurred.
BitMEX expresses readiness to focus on innovation and new products post-ruling.
HDR Global Trading Limited, the parent organization of BitMEX, has been ordered to pay a $100 million fine after being found guilty of violating US money laundering laws. This decision, delivered by Manhattan federal judge John G. Koeltl, follows years of legal scrutiny into the exchange’s practices between 2015 and 2020.
The exchange had pleaded guilty to violating the Bank Secrecy Act (BSA) prior to the latest order. Additionally, its founders, Arthur Hayes and Benjamin Delo, had already pleaded guilty in 2022 to related charges, each paying $10 million in criminal fines.
The lawyer representing the exchange argued that the previous $110 million fine and earlier guilty pleas were sufficient punishment for the violations from 2015 to 2020, but the judge disagreed.
BitMEX revealed that during the case, the US Department of Justice initially proposed a plea deal requiring over $200 million to settle the allegation. However, the exchange rejected the offer as excessive, which led the DOJ to increase the penalty to approximately $420 million. It added that the court’s lower fine supports their view and questioned whether US taxpayer money could have been used better during this time.
BitMEX’s Commitment to Compliance and Innovation
BitMEX expressed disappointment in an official release regarding the ruling but noted that the outcome was far less severe than what was originally sought by the Department of Justice. The company stated that its extensive reforms over recent years had vastly improved its compliance standards since the violations occurred. The exchange wrote:
“Even before the initial BSA charges were made against our founders, we have continuously implemented significant improvements, including a best-in-class user verification program and comprehensive KYC and AML systems. Our users, partners, and regulatory stakeholders have long recognized that BitMEX’s compliance standards and activities have changed immeasurably since the period subject to the BSA charge.”
The exchange regarded the BSA charge as old news, as it mentioned in July 2024. They said that the issue is now behind them as they have shifted focus to innovation and improving the user experience. BitMEX stated that it will continue to maintain its status as a trusted and financially stable platform. It assured users that it would continue to focus on delivering new products and services without further distractions. The company stated:
“We stand firm by the statement that the BSA charge is old news (as made in our statement back in July 2024). We are glad to move past this matter and look forward to continuing to focus on innovation and delivering the best products and services to our users without further distraction. The BitMEX platform will continue to lead the market as the safest, most trusted, financially stable, and professionally operated crypto derivatives exchange, employing new products and innovations month by month to many satisfied users.”
Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor's and master's degrees in linguistics. When not writing, he trades forex and plays video games.