Former BitMEX Developer Has Pleaded Guilty by U.S. Attorney
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After two years of trial, the last defendant in the BitMEX case pleaded guilty.
Gregory Dwyer, BitMEX’s former director of business development, is pleaded guilty to violating the US Bank Secrecy Act.
By Press release shared on the official website of the United States Attorney for the Southern District of New York, the case “US v. Hayes et al.” is closed in Dwyer pleaded guilty to failing to establish, implement and maintain an anti-money laundering program at the company.
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A former business developer is coming pay a $150,000 fine as part of his plea deal. The press release states that the judge will decide on Dwyer’s further punishments.
In the past, prosecutors have argued that it is lack of a know-your-customer (KYC) process, which can make the company a home for money laundering.
Damian Williams, the US attorney assigned to the case, said:
Today’s petition reflects that employees with managerial authority over cryptocurrency exchanges, no less than the founders of such exchanges, cannot willfully ignore their obligations under the Bank Secrecy Act.
The other defendants in this case were sentenced earlier this year. In February, former CEO Arthur Heyes and co-founder Ben Delo were sentenced in the case. Both men have been sentenced to suspended imprisonment, Hayes got two years, while Delo got 30 months.
Another defendant in this case, Samuel Reed, later pleaded guilty and received up to five years in prison. Overall, respondents do pay $20 million in fines. Reed will pay $10 million, while Heyes and Delo will each pay $5 million.
In 2020, the Commodity Futures Trading Commission, the US Department of Justice and the Financial Crimes Enforcement Network filed criminal and civil charges against BitMEX. The payments were based on the notion that BitMEX allowed US residents to trade in crypto payments without the company being registered in the country and having “Know Your Customer” (KYC) verification.