BitMEX agrees to pay US$100 million to resolve AML and KYC compliance violations.
According to a company blog post, Bitmex has agreed to pay up to US$100 million to settle charges brought by the US Commodity Futures Trading Commission and the Financial Crimes Enforcement Network. BitMEX CEO Alex Höptner told Forkast.News in a statement: “We’re relieved to put these matters behind us, and we’re continuing to grow and transform our business with compliance, user verification, and [anti-money laundering] compliance at the forefront of everything we do.”
The CFTC charged the company and several executives, including former CEO and co-founder Arthur Hayes, in October last year with operating an unregistered trading platform and violating know-your-customer and anti-money laundering regulations. Hayes, a Singapore resident, voluntarily surrendered in April.
BitMEX was almost certainly aware that it was under investigation prior to the filing of the charges. A Freedom of Information Act requests to the CFTC by Forcast.News revealed that the agency was actively investigating an exchange earlier this year, though the identity of the exchange was not disclosed.
Angie Lau, Editor-in-Chief of Forcast.News spoke with Hayes at the 2019 Asia Blockchain Summit, where he defended the company’s decision to establish its headquarters in Seychelles.
“Because Seychelles is a very friendly environment for businesses doing our type of business,” Hayes explained, “we have excellent contacts in the government.” “So, it is these nations that do not have entrenched financial power that they must answer to that can actually adapt to changing times, innovate financially, and grow their economies.”
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