U.S. Securities and Exchange Commissioner Hester Peirce, also known as “Crypto Mom,” claims that a wake-up call for crypto companies could be the latest action against BitMEX. In an interview, the SEC commissioner said that the U.S. had recently filed charges against BitMEX. The Department of Justice and the CFTC have placed U.S. anti-money laundering on alert to the international crypto industry and know your customer (KYC) regulations.

BitMEX charges send a message to exchanges worldwide

US SEC Commissioner Pierce said that, on the AML / KYC front, the message had come to the industry reasonably loud and straightforward, and it would continue. It sent a message to the crypto community that there will be enforcement of U.S. laws when there are U.S. consumers of a product or service.

On Oct.1, for breaching AML regulations, the CFTC filed a civil compliance action against BitMEX and three of its executives. Furthermore, for contravening the Bank Secrecy Act, the DOJ filed criminal charges against four executives, including founder Arthur Hayes.

BitMEX co-founders charged for violating US AML laws

According to an indictment, BitMEX managers Arthur Hayes, Benjamin Delo, Samuel Reed, and Gregory Dwyer have been charged with breaching the Bank Secrecy Act and one count of conspiracy.

Arthur Hayes is renowned for feuding with bitcoin skeptics, including Nouriel Roubini, an economist, and advising traders to gamble on the most esoteric digital tools.

The CFTC reported that the founders of BitMEX had failed to enforce the most basic compliance protocols, such as registering their CFTC activities. The Commodity Futures Trading Commission alleged in the complaint that BitMEX has collected more than $11 billion in bitcoin deposits from U.S.-linked accounts since 2014 and has paid more than $1 billion in fees.

LEAVE A REPLY

Please enter your comment!
Please enter your name here