- In June, there will be a hearing for Hayes co-founders who admitted guilt with Hayes.
- Hayes, Delo, and Reed have each been fined $10 million.
After being convicted of breaking the US Bank Secrecy Act, Arthur Hayes has been sentenced to two years of probation and six months of home confinement. This comes after failing to follow anti-money laundering standards by a New York federal court.
Prosecutors Demanded Jail Time
Hayes, who entered a guilty plea in February, a two-year probationary period and a six-month home detention sentence await. In June, there will be a hearing for Benjamin Delo and Samuel Reed, Hayes co-founders who admitted guilt with Hayes earlier this year.
It was alleged that BitMEX officials were selling trading services to consumers in the United States and abroad without adhering to anti-money laundering and Know Your Customer requirements. As a result, they were accused of aiding in money laundering. This was not a mistake on the defendant’s part; rather, it was an admission that he was aware of the consequences of not following anti-money laundering protocols, according to the case’s judge, Judge John Koeltl.
In contrast to prosecutors, Hayes’ lawyers requested no prison time for their client. Prosecutors in the case argued that if founders and executives “believe there are no meaningful repercussions for failing to comply with the law,” complete compliance in the industry would be ineffective.
As early as a year ago, BitMEX was accused of failing to implement adequate anti-money laundering (AML) measures. In August, as part of a deal with the CFTC and FinCEN, its parent business was fined $100 million in penalties. Hayes, Delo, and Reed have each been fined $10 million for their involvement in the affair.
