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BitMEX Hit with $100 Million Fine for Breaking US Banking Laws
Last Updated: January 16, 2025
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Key Takeaways
- BitMEX was fined $100 million and placed on probation for violating US banking laws by neglecting AML and KYC protocols;
- Prosecutors sought a $417 million fine, but the court settled on a smaller penalty after BitMEX admitted to BSA violations;
- Co-founders and an employee previously received probation, with all remaining charges against BitMEX dismissed.
On January 15, Judge John Koeltl ruled against HDR Global Trading Limited, the company behind BitMEX
The US District Court for the Southern District of New York ordered a $100 million fine and placed the company on two years of unsupervised probation.
This decision came around six months after BitMEX admitted breaching the US Bank Secrecy Act (BSA) by failing to implement an effective Anti-Money Laundering (AML) program.
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The exchange had been accused of disregarding the BSA by allowing users to open accounts with only an email address, avoiding proper Know Your Customer (KYC) procedures.
Prosecutors claimed BitMEX earned $155 million from US sources between 2015 and 2020 by ignoring these legal requirements. They had sought a much larger fine of $417 million to reflect the alleged profits from these violations.
On July 2024, BitMEX described the charges as “old news”, claiming it expected no further penalties. After the 15 January ruling, the company reiterated this stance but acknowledged the new fine, stating:
Whilst we are disappointed to learn of the imposition of an additional financial penalty, the amount is substantially less than what the Department of Justice have been pursuing us for over 3 years.
The sentencing also wrapped up a legal case against BitMEX and its leadership. In 2022, the company’s co-founders—Arthur Hayes, Samuel Reed, and Benjamin Delo—along with employee Gregory Dwyer, received probation for their roles in violating the BSA. As part of the latest ruling, all remaining charges against BitMEX were dismissed.
Meanwhile, Robinhood, a crypto trading platform, recently received a $45 million penalty from the SEC. What happened? Read the full story.
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