BitMEX to pay US regulators US$100 million to settle claims of illegal trading, anti-money laundering violations
- New York court approves deal with five companies charged with operating the BitMEX platform
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The penalty stems from a CFTC order last October against BitMEX and its three founders Benjamin Delo, Samuel Reed and Arthur Hayes, who was also the former chief executive. The regulator said its litigation against BitMEX’s founders continues.
“This action highlights that the registration requirements and core consumer protections Congress established for our traditional derivatives market apply equally in the growing digital asset market,” said Vincent McGonagle, CFTC’s acting director of enforcement. “Cryptocurrency trading platforms conducting business in the US must implement robust know-your-customer and anti-money laundering procedures.”
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The CFTC concluded that from November 2014 to October 2020, BitMEX had violated the US Commodity Exchange Act by operating as a futures commission merchant without CFTC registration. It also found that the company had failed to implement adequate anti-money laundering procedures.
Gary Gensler, chairman of the Securities and Exchange Commission, said last week that cryptocurrency assets need more regulation as it was “rife with fraud, scams and abuse in certain applications”.
The trading platform is not available to users in Hong Kong, according to BitMEX’s website.
“Putting this legal matter with the CFTC and FinCEN behind us will only accelerate our evolution, and puts us firmly on the right path,” Hoptner said.