Third BitMEX Co-Founder Pleads Guilty to US Money Laundering Charges

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Third BitMEX Co-Founder Pleads Guilty to US Money Laundering Charges By Hannah Perez

Samuel Reed pleaded guilty to the same charges as the exchange’s other two co-founders and agreed to pay a $10 million fine.


Just under two weeks after two of the cryptocurrency derivatives exchange’s co-founders, BitMEXwill plead guilty to money laundering charges in the United States, the third co-founder implicated has also chosen to take the guilty charge.

Samuel Reed agreed to pay a $10 million fine for the exchange’s anti-money laundering failures after pleading guilty in federal court in Manhattan on Wednesday this week. The third co-founder pleaded guilty to a charge of violating the Bank Secrecy Act, which requires financial institutions to try to curb illicit uses of their services.

As reported CoinDeskReed said he was responsible for “not knowingly establish, implement and maintain” an anti-money laundering program in BitMEX. The charge carries a maximum sentence of five years in prison, according to the Department of Justice (DOJ). Reed’s sentence is yet to be decided by a federal judge.

awaiting federal sentencing

The other two founders of the platform, Arthur Hayes and Benjamin Delo, accepted the same Bank Secrecy Act violation charges in late February and agreed to identical financial penalties. Now all three could face sentences of up to five yearsalthough the verdict of the federal judge is still awaited.

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In accordance with Wall Street Journal, Reed has agreed not to appeal if he is sentenced to prison for up to six months. His legal team said in a statement that they are pleased to have resolved the case and “looks forward to focusing on the next phase of his life and career”.

The DOJ and the Commodity Futures Trading Commission (CFTC) filed federal charges against BitMEX and its founders in October 2020. At the time, authorities alleged that Hayes, Delo, and Reed, “they tried to evade” the US money laundering (AML) regulations establishing operations abroad but allowing US customers to transact on the platform. BitMEX settled these charges last year when it paid a $100 million fine to the CFTC.

Manhattan U.S. Attorney Damian Williams said Wednesday that he would not allow cryptocurrency exchanges to operate as a “shadow financial system“. CoinDesk He quoted the prosecutor’s statement:

As today’s guilty plea reflects, this Bureau will not allow cryptocurrency exchanges to operate as a shadow financial system that allows criminals to move their ill-gotten gains undetected, and will vigorously investigate and prosecute the operators of such exchanges. who deliberately flout US law.

It is not clear if Gregory Dwyer, the chief executive of BitMEX who was also indicted in 2020, plans to follow in the same footsteps. In September 2021, Dwyer’s lawyers negotiated his extradition to the US to take on the litigation process in that country.

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Article by Hannah Estefanía Pérez / DailyBitcoin

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