Federal Judge John G. Koeltl has ordered BitMEX to pay a $100 million fine, the latest development in an ongoing legal dispute involving money laundering infractions in the United States.
BitMEX faces major legal setback
The legal challenges for BitMEX stem from activities between 2015 and 2020, during which the exchange allegedly failed to comply with the US Bank Secrecy Act (BSA). The BSA requires financial institutions to assist government agencies in detecting and preventing money laundering.
Although BitMEX lawyers argued that a previous $110 million fine and previous guilty pleas from the exchange’s founders were sufficient punishment, Judge Koeltl found additional financial sanctions necessary.
In 2022, BitMEX founders Arthur Hayes and Benjamin Delo admitted guilt to comparable charges, and both agreed to pay a $10 million criminal fine.
Exchange implements improved KYC and AML measures
In a statement following the ruling, the company expressed disappointment with the additional financial penalty, but noted that the amount was significantly lower than the Department of Justice’s (DOJ) initial requests, which exceeded $200 million during negotiations plea agreement and rose to approximately $420 million during sentencing. discussions.
The exchange underlined its commitment to compliance, saying it has made significant improvements to its operations over the period covered by the BSA tariffs.
This includes implementing a robust user verification program and comprehensive Know Your Customer (KYC) and anti-money laundering (AML) systems. BitMEX says these advances have been recognized by users, partners and regulatory stakeholders.
“We remain steadfast in our assertion that the BSA allegation is old news,” the company noted in its statement. BitMEX has expressed its desire to overcome these legal challenges and focus on innovation and providing services for its users.
The exchange aims to maintain its position as a leading, reliable and financially stable crypto derivatives platform by continuously launching new products and innovations to meet user demands.
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