The legal saga surrounding crypto derivatives exchange BitMEX continues. According to Bloomberg, co-founder Benjamin Delo traveled from the UK to the United States, pleaded not guilty before U.S. Magistrate Judge Sarah L. Cave, and was subsequently released after posting a $20 million bail bond. He was permitted to return to the UK but must attend a court status conference scheduled for May.
Bank Secrecy Act Violations
In October 2020, the Commodity Futures Trading Commission (CFTC) and the U.S. Department of Justice charged Delo, along with Arthur Hayes and Samuel Reed, with violating the Bank Secrecy Act (BSA). The BSA requires financial institutions to maintain records of transactions exceeding $10,000 to combat money laundering. Additionally, Gregory Dwyer, an early employee of the exchange, was also charged and remains at large.
A spokesperson for Delo told Bloomberg: “The charges are unfounded and an overreach by U.S. authorities. Delo intends to defend himself and clear his name in court.”
Hayes to Surrender on April 6 in Hawaii
On May 17, 2021, the U.S. District Court for the Southern District of New York announced that Arthur Hayes had agreed to surrender on April 6, 2021. He will be released on a $10 million bond, secured by a $1 million cash deposit. Hayes currently resides in Singapore and will appear before authorities in Hawaii, according to court filings.
Samuel Reed, another co-founder, was arrested in 2020 and released on a $5 million bond. With Delo and Hayes now facing U.S. proceedings, all three BitMEX co-founders are entangled in legal battles with regulators.
This development underscores heightened regulatory scrutiny on cryptocurrency derivatives platforms. As one of the largest such exchanges globally, BitMEX’s compliance issues may set a precedent for the industry.