Home Business New Guilty Plea in Crypto Exchange BitMEX Laundering Case

New Guilty Plea in Crypto Exchange BitMEX Laundering Case

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New Guilty Plea in Crypto Exchange BitMEX Laundering Case

Representations of cryptocurrencies in this illustration taken January 24, 2022. REUTERS/Dado Ruvic/Illustration

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NEW YORK, Aug 8 (Reuters) – BitMEX’s first employee pleaded guilty on Monday to violating U.S. bank secrecy laws by failing to implement an anti-money laundering program, following guilty pleas for the same charge by the three co-founders of the cryptocurrency exchange. .

Gregory Dwyer, 39, of Australia and Bermuda, pleaded before US District Judge John Koeltl in Manhattan. He also agreed to pay a $150,000 fine.

Prosecutors say that from 2015 to 2020, Dwyer and BitMEX founders Benjamin Delo, Arthur Hayes and Samuel Reed willfully violated federal bank secrecy law by failing to adopt anti-money laundering programs. money and to “know your customer”, thus transforming the exchange into money. washing platform.

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Dwyer was a business development manager at BitMEX, short for Bitcoin Mercantile Exchange.

He could face up to five years in prison, although Delo, Hayes and Reed have each been sentenced to probation.

A lawyer for Dwyer did not immediately respond to requests for comment.

BitMEX agreed last August to pay up to $100 million to settle civil charges brought by two U.S. financial regulators for failing to properly screen customers and accepting customer funds to trade cryptocurrencies without being registered. Read more

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Reporting by Jonathan Stempel in New York Editing by Marguerita Choy

Our standards: The Thomson Reuters Trust Principles.

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