BitMEX Slapped with Additional $100M Fine Over Bank Secrecy Act Violations
BitMEX has been issued an additional $100 million fine for violations of the Bank Secrecy Act that occurred between 2015 and 2020.
- The exchange admitted to these offenses in July 2024 and had earlier agreed to settle with a $110 million penalty, but U.S. District Judge John G. Koeltl deemed the $110 million fine BitMEX had agreed to last year insufficient.
- Prosecutors then sought a penalty of $417 million, arguing that BitMEX hasn't truly accepted responsibility and only pleaded guilty after its founders did. Plaintiffs claim BitMEX earned approximately $1.3 billion while ignoring U.S. regulations over five years.
"Whilst we are disappointed to learn of the imposition of an additional financial penalty, the amount is substantially less than what the Department of Justice have been pursuing us for over 3 years," said the company in a blog post.
- The additional fines in this criminal case are separate from civil charges brought by the CFTC and FinCEN in 2022 against BitMEX and senior executives, including co-founder Arthur Hayes, for similar violations.
- BitMEX's parent company, HDR Global Trading Inc., will also face a two-year probationary period.
"Given that the Court has determined an amount substantially below these levels is a justification of our stance and we query whether U.S. taxpayer resources could have been better applied over this period. We are glad to move past this matter, and look forward to continuing to focus on innovation and delivering the best products and services to our users without further distraction," added BitMEX.
Press Release / Archive
BitMEX Blog Post / Archive
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