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May 20,2022
Former BitMEX CEO Arthur Hayes Faces 6 to 12 Months in Jail at Sentencing Hearing Friday KingData News: Former BitMEX CEO Arthur Hayes is set to face sentencing in a federal courthouse in New York on Friday after pleading guilty in February to charges that he willfully failed to implement an anti-money laundering (AML) program at the exchange. Prosecutors say the lack of know-your-customer (KYC) requirements at BitMEX allowed the company to thrive as a hotbed for criminal activity, including money laundering and sanctions evasion. Hayes and his BitMEX co-founders, Samuel Reed and Ben Delo, as well as the company’s first employee, Gregory Dwyer, were initially charged in October 2020 with one count each of violating the Bank Secrecy Act (BSA), and another of conspiring to do so. The four men, as well as BitMEX and other corporate entities, also faced civil suits from the Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN) that resulted in monetary penalties. BitMEX was ordered to pay the regulators $100 million; Hayes, Reed, and Delo had to fork over $10 million each. (CoinDesk)
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