The founders of BitMEX, a well-known cryptocurrency trading platform, have been formally charged with violating US anti-money laundering regulations. One of them, Samuel Reed, has already been arrested while Arthur Hayes, Ben Delo and Gregory Dwyer are wanted. In fact, the allegations are multiple because BitMEX is also accused of operating in the US without the authorization of the CFTC (Commodity Futures Trading Commission). In August, BitMEX announced the introduction of its operators’ identity verification procedures, but evidently, it was too little and too late.
BitMEX was created in 2014 with the main office in the Seychelles. It’s been at the center of controversy for some time. In some ways, this is normal in the field of cryptocurrencies because in the world of decentralized finance (DeFi) the rules can be vague and certainly less strict than those in the world of classic finance. On the other hand, accusations of involvement in various illegal activities have long since begun for BitMEX. Now the allegation of US anti-money laundering violations has led to a prosecution by a New York District Attorney.
Many people have embraced the world of cryptocurrencies because it differs from that of classic banks and finance, but the CFTC’s allegations indicate a behavior similar to those of companies that want to hide their activities. Indeed, the founders of BitMEX are accused of operating through a maze of corporate entities, which is typical of those who want to hide money movements.
As for Bitcoin transitions, BitMEX is indicated to have received the equivalent of over $11 billion in deposits, earning over $1 billion in fees while conducting business in the US and accepting orders and funds from American clients.
A court will have to judge the allegations and it will be interesting to see the results. After the news was made public, there was a general loss in the cryptocurrency field and after a while the started going up again. A clean up in the world of cryptocurrency trading is useful to make that market stronger and more attractive for people who want to earn honestly.
