{"id":442658,"date":"2022-05-06T05:15:29","date_gmt":"2022-05-06T02:15:29","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/court-orders-bitmex-founders-to-pay-30m-civil-penalty\/"},"modified":"2022-05-06T05:15:29","modified_gmt":"2022-05-06T02:15:29","slug":"court-orders-bitmex-founders-to-pay-30m-civil-penalty","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/court-orders-bitmex-founders-to-pay-30m-civil-penalty\/","title":{"rendered":"# Court orders BitMEX founders to pay $30M civil penalty"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a41690d42a40\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a41690d42a40\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/court-orders-bitmex-founders-to-pay-30m-civil-penalty\/#%E2%80%9D_Court_orders_BitMEX_founders_to_pay_30M_civil_penalty_%E2%80%9C\" >&#8221; Court orders BitMEX founders to pay $30M civil penalty &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/court-orders-bitmex-founders-to-pay-30m-civil-penalty\/#Additional_legal_battles\" >Additional legal battles<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Court_orders_BitMEX_founders_to_pay_30M_civil_penalty_%E2%80%9C\"><\/span>&#8221; Court orders BitMEX founders to pay $30M civil penalty &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvOTM3NDc1OTktMDI0Ni00ZjNjLTg2MDAtYjc2NTRmZjI4Zjg1LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>The U.S. District Court for the Southern District of New York has ordered a total of $30 million civil monetary penalties from the three co-founders of BitMEX crypto derivatives exchange, including former CEO Arthur Hayes.<\/p>\n<p>Hayes, Benjamin Delo, and Samuel Reed were each fined $10 million in consent payments according to a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cftc.gov\/PressRoom\/SpeechesTestimony\/johnsonstatement050522\">statement<\/a> from the Commodity Futures Trading Commission (CFTC) at the conclusion of a court battle on May 5 in which the CFTC said they violated aspects of the Commodity Exchange Act and CFTC regulations from November 2014 to October 2020. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">CFTC: Bitmex Co-Founders Ordered to Pay $10 Million Each<\/p>\n<p>\u2014 db (@tier10k) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/tier10k\/status\/1522323859646656517?ref_src=twsrc%5Etfw\">May 5, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nThe CFTC filed suit against the exchange and its three co-founders on Oct. 1, 2020. In a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8522-22\">rundown<\/a> of the conclusion of the case today, the Commission stated that the defendants were accused of \u201coperating the BitMEX platform while conducting significant aspects of BitMEX\u2019s business from the U.S., and unlawfully accepting orders and funds from U.S. customers to trade cryptocurrencies,\u201d including Bitcoin (BTC), Ether (ETH), and Litecoin (LTC) derivatives.<\/p>\n<p>The CFTC said unlawful acts included the operation of a facility to trade or process swaps without having CFTC <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roval to operate as a Designated Contract Market or a Swap Execution Facility. It said they had also operated as a Futures Commission Merchant without CFTC registration, failed to implement a Customer Information Program and Know-Your-Customer procedures or an adequate Anti-Money Laundering program.<\/p>\n<p>CFTC Commissioner Carline D. Pham said in a separate May 5 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cftc.gov\/PressRoom\/SpeechesTestimony\/phamstatement050522\">statement<\/a> that her Commission is committed to pursuing \u201cwrongdoers with an unfair advantage\u201d that operate in violation of the law.<\/p>\n<blockquote><p>\u201cBy enforcing individual accountability for registration, market conduct, and anti-money laundering rules\u2014fundamental aspects of the U.S. regulatory framework\u2014the CFTC is ensuring that BitMEX\u2019s management is held responsible after last year\u2019s $100 million dollar settlement with corporate defendants.\u201d<\/p><\/blockquote>\n<h3><span class=\"ez-toc-section\" id=\"Additional_legal_battles\"><\/span>Additional legal battles<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>According to reporting from Cointelegraph in February, Hayes and Delo pleaded guilty to violating the Bank Secrecy Act in a separate case filed by the DOJ. In the plea, they admitted to \u201cwillfully failing to establish, implement and maintain an Anti-Money Laundering (AML) program.\u201d<\/p>\n<p>Bloomberg <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-05-05\/bitmex-ex-ceo-hayes-asks-for-no-jail-time-freedom-to-travel\">reported<\/a> on May 5 that Hayes\u2019s mother was particularly concerned with how the federal judge presiding over the DOJ\u2019s case would sentence her son. The defense offered a letter from her asking for a lenient sentence, and his lawyers requested a sentence of probation without house arrest or community confinement.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Dfinity Foundation files lawsuit against Meta over infinity logo<\/em><\/strong><\/p>\n<p>Last August, Cointelegraph reported that BitMEX agreed to pay $100 million in consent payments to both the CFTC and the Financial Crimes Enforcement Center (FinCEN) in order to resolve a separate case where the CFTC and FinCEN said exchange operators HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited and HDR Global Services Limited illegally operated the exchange. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/court-orders-bitmex-founders-to-pay-30m-civil-penalty\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Court orders BitMEX founders to pay $30M civil penalty &#8220; The U.S. District Court for the Southern District of New York has ordered a total of $30 million civil monetary penalties from the three co-founders of BitMEX crypto derivatives exchange, including former CEO Arthur Hayes. Hayes, Benjamin Delo, and Samuel Reed were each fined&#8230;<\/p>\n","protected":false},"author":1,"featured_media":442659,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvOTM3NDc1OTktMDI0Ni00ZjNjLTg2MDAtYjc2NTRmZjI4Zjg1LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[82304,74993,75422,70934],"class_list":["post-442658","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-arthur-hayes","tag-bitmex","tag-cftc","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/442658","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=442658"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/442658\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/442659"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=442658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=442658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=442658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}