HDR Global Trading Ltd., also known as BitMEX, has been fined $100 million for violating the Bank Secrecy Act. The company was found guilty of failing to establish and maintain adequate anti-money laundering (AML) and know-your-customer (KYC) programs. This announcement was made by Matthew Podolsky, Attorney for the United States, who is acting under authority conferred by 28 U.S.C. § 515.
Matthew Podolsky emphasized the importance of AML and KYC rules in protecting Americans from fraud and preventing terrorist financing. He stated, “Anti-money laundering and know-your-customer rules protect Americans from fraud, combat money laundering, and prevent the financing of terrorist activity. It is critical that all financial institutions, including cryptocurrency exchanges, comply with these rules to protect our country’s economy and national security. Today’s sentence sends a clear message that companies that willfully violate these rules and refuse to implement AML/KYC programs will face consequences.”
The case against BitMEX involved allegations that its founders—Arthur Hayes, Benjamin Delo, Samuel Reed—and its first employee Gregory Dwyer failed to register with the Commodity Futures Trading Commission (CFTC) as required. They did not implement an adequate AML program despite knowing their obligations due to serving U.S. customers.
Senior executives at BitMEX were aware that U.S.-based customers continued using their platform through at least 2018 without proper oversight or restrictions. Executives took steps aimed at exempting BitMEX from U.S. laws like AML and KYC requirements while operating in the country.
Hayes, Delo, Reed, and Dwyer had previously pleaded guilty to violating the Bank Secrecy Act in 2022. The corporation entered a guilty plea on July 10, 2024.
In addition to the fine imposed on BitMEX today; they received two years' probation.
Mr. Podolsky commended "the outstanding investigative work of the Federal Bureau of Investigation’s New York Money Laundering Investigation Squad." The prosecution is being managed by Assistant U.S Attorneys Jessica Greenwood and Thane Rehn from Illicit Finance & Money Laundering Unit within his office.
