BitMEX agrees to pay $100M to settle claims of illegal transactions and violations of the Money Laundering Act

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The Cryptocurrency exchange BitMex, one of the world’s largest trading platforms after Binance said Tuesday it will pay a $100 million penalty to settle civil charges with the Commodities Futures Trading Commission and Financial Crimes Enforcement Network, resulting in one of the biggest settlements ever against a cryptocurrency exchange as regulators rev up enforcement of the nascent industry.

  • As confirmed by the exchange today, BitMEX has reached a $100 million resolution with the two U.S. Regulators – the Commodity Futures Trading Commission (CFTC) and Financial Crimes Enforcement Network (FinCEN).
  • Speaking on the settlement, BitMEX CEO Alexander Höptner noted that the development marks an important day for the company as they finally were able to put the ordeal behind them.
  • Höptner added that from now on, the exchange would actively engage with regulatory bodies across the world to ensure that they are in compliance while also playing a positive role in sharpening the future of the crypto industry.
  • “As crypto matures into a new era, we too have evolved into the largest cryptographic derivatives platform with a fully verified user base. Comprehensive user verification, robust compliance and anti-money laundering capabilities are not only the hallmarks of our company; they are the drivers of our long-term success,” said Ms. Höptner.
  • Recall that BitMEX underwent a tumbling period after the company and its executives were slammed with charges by the CFTC and the Department of Justice (DoJ) for avoiding US regulations which included operating an unregistered derivatives platform.
  • Following the court filings, the exchange appointed a new compliance head with an AML background, made other key hires, and restructured its management team with Arthur Hayes and other founders stepping down from their executive positions.
  • BitMEX also made efforts to ensure that it became compliant with the registration requirements as it quickly launched a compulsory verification process for all its users.
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CRUCIAL QUOTE- Rostin Behnam

“This case reinforces the expectation that the digital assets industry, as it continues to touch a broader pool of market participants, takes seriously its responsibilities in the regulated financial industry and its duties to develop and adhere to a culture of compliance,” CFTC Acting Chair Rostin Behnam said in a Tuesday statement.

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THE BIG NUMBER BITMEX

$2.5 billion. That’s about how much U.S. Regulators have levied in fines against the cryptocurrency industry since bitcoin was first created in 2009, according to an  by blockchain analytics company Elliptic in June.

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