Co-founders of major cryptocurrency trading platform BitMEX are charged with violating the US Bank Secrecy Act
- Four top executives of major crypto trading platform
BitMEXhave been charged with violating US anti-money laundering regulations, the Commodity Futures Trading Commission said on Thursday.
- The co-founders and head of business development have each been charged with one count of violating the US Bank Secrecy Act and one count of conspiracy to violate the act.
- Each charge carries a maximum penalty of five years in prison, the Justice Department said.
lawsuitalleged that BitMEX "failed to implement the most basic compliance procedures."
- One of the four defendants was arrested in Massachusetts on Thursday morning.
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Top executives of major
BitMEX "failed to implement the most basic compliance procedures" such as not having regulatory approval to run its trading facility, the Commodity Futures Trading Commission said in its own lawsuit.Read More: BlackRock's investment chief breaks down why Congress passing a second round of fiscal stimulus is 'quite serious' for markets and the economy — and pinpoints which sectors will benefit in either scenario
William Sweeney, FBI assistant director, said the four defendants "willfully violated" the act by evading its requirements. "One defendant went as far as to brag the company incorporated in a jurisdiction outside the U.S. because bribing regulators in that jurisdiction cost just 'a coconut.'"BitMEX's platform received over $11 billion in
Legal counsel for Dwyer plan to contest the charges, saying that he "always worked in good faith to comply with all applicable regulations." Attorneys Sean Hecker and Jenna Dabbs said their client "helped BitMEX establish an international business that operated with the highest integrity."
BitMEX is the second-largest cryptocurrency derivates exchange based on trading volumes, according to CoinMarketCap, after Binance. It holds around 193,000 BTC, worth about $2 billion at current prices.The total crypto-market capitalization lost around $13 billion in the hours following news that BitMEX was charged with US regulation
Read More: US Investing Championship hopeful Evan Buenger raked in a 131.9% return through August. He shares the distinct spin he's putting on a classic trading strategy that's led to his outsize returns.
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