Former BitMEX Chief Executive Officer Arthur Hayes turned himself to U.S. authorities in Hawaii to face charges linked to skirting money-laundering laws, according to Bloomberg.
- Hayes on Tuesday appeared before a federal judge in Honolulu, and was released on a $10 million bond pending future court proceedings in New York, pursuant to an earlier agreement.
- A Singapore resident, Hayes and BitMEX co-founders are accused of failing to take steps to prevent the cryptocurrency exchange from being used for money laundering.
- Hayes founded BitMEX in 2014 with Oxford-educated computer scientist Benjamin Delo, and programmer Samuel Reed who specializes in web applications. They were all charged with one count of violating the Bank Secrecy Act and one count of conspiring to violate the act. Each offense has a maximum sentence of five years imprisonment.
- The Commodity Futures Trading Commission (CFTC) started probing BitMEX in 2019, focusing on whether it broke rules by allowing U.S. customers to trade on the platform.
- Prosecutors say the co-founders chose to base the exchange in Seychelles to escape regulatory scrutiny, and that they worked to skirt compliance programs and bragged about it.