The cash laundering trial for the previous executives of U.S. cryptocurrency change BitMEX has been scheduled for March 28, 2022.
On Could 11, New York District Choose John Koeltl set the trial date for former BitMEX executives CEO Arthur Hayes, co-founder Benjamin Delo, and chief know-how officer Samuel Reed.
The trio are accused of violating the Financial institution Secrecy Act and anti-money laundering legal guidelines. Moreover, BitMEX’s head of enterprise improvement, Gregory Dwyer, can also be dealing with fees however has but to seem within the case.
The U.S. Division of Justice initially filed the criminal charges against the four executives on October 1, 2020, for illegally working a derivatives change. Hayes, Delo, and Reed based BitMEX in 2014 however didn’t register with the U.S. Commodity Futures Buying and selling Fee which has additionally filed a civil enforcement motion towards the corporate.
DoJ prosecutors have accused BitMEX executives of failing to implement AML procedures whereas doing enterprise with U.S.-based merchants, regardless of the corporate being based mostly within the Seychelles.
Based on the indictment, Hayes allegedly mentioned in July 2019 that the Seychelles was a friendlier jurisdiction because it price much less to bribe authorities there than it will within the U.S. FBI Assistant Director William Sweeney claimed to the press that Hayes bragged about bribing regulators in that jurisdiction costing simply “a coconut.”
Based on John Jefferies, chief monetary analyst at blockchain intelligence agency CipherTrace, BitMEX had been under CFTC investigation since early 2019 for permitting People to commerce on the platform. Talking to Cointelegraph, he added that they got time to enhance their Buyer Identification Program to successfully exclude U.S. purchasers.
Any protection motions are on account of be filed in June whereas different potential pretrial motions are scheduled to be lodged by September, a Law360 report famous. If convicted, the executives may face a most of 5 years in jail and a $250,000 high-quality.
In mid-January, BitMEX introduced that it was working with blockchain analytics firm Chainalysis with the goal of figuring out, investigating, and stopping illicit transactions.