Arthur Hayes was sentenced to two years in prison for his role in BitMEX’s AML blunder
Despite the prospect of jail time, Hayes was sentenced to six months of house detention and two years probation for proactively admitting to the claims. One of the four federal district courthouses in New York allegedly sentenced founder and ex-CEO Arthur Hayes to two years probation and six months home detention, bringing the long-awaited verdict connected to the BitMEX crypto exchange’s money-laundering operations to a close. On February 24, Arthur Hayes, the two BitMEX co-founders — Benjamin Delo and Samuel Reed — and the company’s first non-employee Gregory Dwyer pled guilty to BSA breaches, admitting to “willfully neglecting to design, execute, and maintain an Anti-Money Laundering (AML) program at BitMEX.”
Pleading guilty to assisting in money laundering is a criminal offense with a potential punishment of five years in jail. However, before the March trial date, both Hayes and Delo entered guilty pleas and agreed to pay $10 million in criminal fines. Hayes was released after paying a $10 million bail bond, according to the indictment, public court papers, and remarks made in court, awaiting further hearings in New York. Prosecutors from the Office’s Money Laundering and Transnational Criminal Enterprises Unit, however, found the entrepreneurs guilty of failing to apply AML measures, including failing to meet know-your-customer (KYC) duties.
Despite the fact that he faced jail time, Hayes was sentenced to home confinement for the first six months of his sentence after admitting to the claims. In addition, he agreed to pay a $10 million punishment. A new investigation debunks the misconception about the ease of laundering money using cryptocurrency, highlighting the potential of blockchain technology and cryptocurrency to follow down financial crimes. While various projects in the crypto ecosystem have been attacked, unscrupulous actors are still having difficulty paying out stolen monies.