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Crime and Investigations

BitMEX Admits Guilt in US Money Laundering Violation Case

BitMEX Admits Guilt in US Money Laundering Violation Case

BitMEX, a crypto derivatives exchange, admitted guilt for violating the US Bank Secrecy Act due to inadequate anti-money laundering (AML) measures.

The US Attorney’s Office for the Southern District of New York stated that BitMEX failed to establish an effective AML program from 2015 to 2020, enabling significant revenue from its operations.

US Attorney Damian Williams highlighted BitMEX’s compliance shortcomings, which facilitated potential large-scale money laundering and sanctions evasion schemes. He emphasized the necessity for cryptocurrency firms operating in the US market to adhere to US laws.

BitMEX also misrepresented its subsidiary, Shine Effort Inc., to a foreign bank, enabling millions of dollars to flow through the US financial system.

READ MORE: Metaplanet Increases Bitcoin Holdings with $1.2 Million Purchase

The company’s AML policies were described as inadequate and easily circumvented, including ineffective IP address checks and insufficient measures against VPN usage.

The case focuses on BitMEX as the defendant, with individual executives implicated for their roles. Earlier, co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed pleaded guilty to related charges and received probation sentences and fines, collectively amounting to millions of dollars.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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