According to United States district attorneys, the Co-Founder of the cryptocurrency exchange BitMEX– Arthur Hayes– must remain behind bars for more than 12 months since his business broke anti-money laundering laws. It is anticipated that the court will sentence him to invest in between 6 months and one year in federal jail because he pleaded guilty to breaching the Bank Secrecy Act in February.
One Year is Is Not Enough
The digital possession exchange and acquired trading platform– BitMEX— made the headings in October 2020 when the Commodity Futures Trading Commission (CFTC) implicated the Co-Founders Arthur Hayes, Benjamin Delo, and Samuel Reed of stopping working to develop and preserve an AML program. The district attorneys argued that the executives’ actions turned the trading location into a “money-laundering platform.”
The following claims resulted in punitive damages of $100 million troubled BitMEX, while the Co-Founders stepped down.
In February this year, Hayes pleaded guilty to the charges brought against him, which might approve him a decreased jail sentence of 6 to 12 months. Furthermore, he consented to pay a $10 million fine.
However, United States district attorneys believed that this penalty does not appear severe enough. Bearing in mind the infractions he did, Hayes should have been in federal jail for over one year, they included:
” There is no concern that this case has been very carefully viewed in the cryptocurrency market. Compliance by cryptocurrency platforms will be unattainable if their operators think there are no significant consequences for stopping working to abide by the law.”
For their part, Hayes’ attorneys firmly insisted that their customer ought to not see the jail cell from the within and enable him to take a trip abroad easily. They argued that this case is a turning point for future infractions and will assist the United States federal government fix financial criminal offenses associated with crypto platforms.
The Probation Office likewise thinks Hayes needs to not go to jail, suggesting two-year probation.
The Other Co-Founders Are Not Safe
Benjamin Delo and Samuel Reed were likewise knocked with punitive damages for BitMEX’s law infractions. Previously this month, the CFTC purchased them to pay $10 million fines each.
In addition, their court sentencings are set for June 15 (Delo) and July 13 (Reed) as it stays unidentified whether they will deal with jail time, probation, or additional financial sanctions.