Crypto derivatives platform BitMEX says it has agreed to pay $100 million to resolve charges that were filed by US regulators in October of 2020.
BitMEX says it has settled with the U.S. Financial Crimes Enforcement Network (FinCEN) and the Commodity Futures Trading Commission (CFTC).
According to the CFTC, a settlement was reached with five entities that were charged with running the BitMEX crypto derivatives platform.
The five entities are HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited, and HDR Global Services (Bermuda) Limited.
“The order requires the BitMEX entities to pay a $100 million civil monetary penalty, and provides that up to $50 million of the penalty may be offset by payments the BitMEX entities make or are credited pursuant to a Consent to Assessment of Civil Monetary Penalty entered by the Financial Crimes Enforcement Network.”
The CFTC further states that its litigation against BitMEX founders Arthur Hayes, Benjamin Delo, and Samuel Reed will continue.
In the CFTC complaint filed on October 1st of 2020, the regulator accused BitMEX’s founders and entities of partially operating from the US and serving US customers.
“The CFTC complaint charged the entities and founders with operating the BitMEX platform while conducting significant aspects of BitMEX’s business from the U.S. and unlawfully accepting orders and funds from U.S. customers to trade cryptocurrencies, including derivatives on bitcoin, ether, and litecoin.”
FinCEN accused BitMEX of operating with inadequate anti-money laundering and customer identification measures.
“For over 6 years, BitMEX failed to implement and maintain a compliant anti-money laundering program and a customer identification program, and it failed to report certain suspicious activity.
From approximately 2014 through 2020, BitMEX allowed customers to access its platform and conduct derivative trading without appropriate customer due diligence – collecting only an email address and failing to verify customer identity.”
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