WASHINGTON: BitMEX, one of the world’s largest virtual currency derivatives exchanges, has been accused of illegally accepting customer funds when it was not registered to do so as well as failing to conduct customer dues. has agreed to pay up to $100 million to settle charges. Devotion.
The US Commodity Futures Trading Commission (CFTC) and the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) unit alleged on Tuesday that for six years, BitMEX sold cryptocurrency derivatives to US clients without properly registering with US authorities.
US officials said on Tuesday that BitMEX also failed to implement and maintain proper compliance programs to identify customers and prevent money laundering. The exchange also failed to report suspicious activity, he said.
Rostin Behnum, Acting Chairman of the CFTC, said the case reinforces that the world of digital assets “needs to take seriously its responsibilities in the regulated financial industry.”
The cryptocurrency reached a record capitalization of $2 trillion in April as more investors stocked their portfolios with digital tokens, but market oversight remains weak.
The five companies accused of operating BitMEX agreed to pay $80 million to settle the allegations, with another $20 million suspended review. BitMEX, which did not accept or deny the findings, said it has taken a number of steps to boost its compliance.
“Comprehensive user verification, strong compliance and anti-money laundering capabilities are not only hallmarks of our business – they are the drivers of our long-term success,” BitMEX CEO Alexander Hopptner said in a statement.
The Justice Department in October https://www.reuters.com/article/us-usa-crime-bitmex-idUKKBN26M6SE indicted Arthur Hayes, Samuel Reid and Benjamin Delo, who founded Bitmex in 2014, and Gregory Dwyer, Its first employee, and later its head of business development, with conspiring to violate the federal Bank Secrecy Act and violate that law.
A spokesman for the co-founders, who were not a party to Tuesday’s deal, said they look forward to defending themselves in court.
“As their defense will show, from the early days of the company, the co-founders sought to comply with applicable law as it evolved over time,” the spokesperson said in a statement.
Dior could not be reached for comment.
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