President Donald Trump officially pardoned Bitmex co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed on March 27, 2025, fully clearing their 2022 convictions for willfully failing to maintain adequate anti-money laundering (AML) and Know Your Customer (KYC) programs at the Seychelles-based cryptocurrency derivatives exchange.
Background of Bitmex's Legal Troubles
Bitmex, launched in 2014, was once the world's largest leveraged crypto trading platform by volume. In 2020, U.S. prosecutors alleged the exchange violated the Bank Secrecy Act by operating without sufficient AML protocols, enabling anonymous trading that could facilitate illicit finance. All three co-founders pleaded guilty in 2022, after Trump's first term, to charges of willfully neglecting AML requirements. Hayes and Delo received probation and six-figure fines, while Reed accepted similar terms. A fourth executive, Gregory Dwyer, was also convicted but was not included in Trump's pardon.
Impact of the Pardon
The pardons, issued during Trump's second term, erase the trio's criminal records but do not reverse the fines already paid. No official explanation was provided by the White House, but the move aligns with Trump's recent pro-crypto stance, including meetings with industry leaders and previous pardons for figures like Silk Road's Ross Ulbricht. The pardon wave has also sparked speculation that Roger Ver—currently battling extradition to the U.S. over alleged tax violations—might benefit from a similar pardon.
Hayes and Reed have not publicly commented. The timing of the pardons—a day before Trump's reported policy announcements—fuels debate over their implications for crypto regulation and presidential clemency norms.
Benjamin Delo said in a statement shared with Bitcoin.com News: “The U.S. Department of Justice wrongfully targeted Bitmex and its co-founders. This full and unconditional pardon by President Trump is a vindication of the position we have always held – that BitMEX, my co-founders and I should never have been charged with a criminal offense through an obscure, antiquated law. As the most successful crypto exchange of its kind, we were wrongfully made to serve as an example, sacrificed for political reasons and used to send inconsistent regulatory signals.”
Delo added: “I’m sincerely grateful to the President for granting this pardon to me and my co-founders. A legal wrong has been righted today and despite the distress I have been through over the past few years I’m pleased to have cleared my name and to be able to continue my life and philanthropic work without the burden of an unfounded conviction.”
The pardon has reignited debate on the boundaries of presidential power and crypto regulation. Supporters view it as a correction of prosecutorial overreach, while critics worry it could undermine the authority of AML laws. Regardless, the Trump administration is steadily shaping a friendlier regulatory environment for the crypto industry.