Prominent crypto exchange, BitMEX is once again making headlines after it came to a settlement with the Commodity Futures Trading Commission [CFTC], and the Financial Crimes Enforcement Network [FinCEN] of the United States.
Back in 2020, BitMEX made immense news after it fell under the purview of the Commodity Futures Trading Commission [CTFC] for its weak anti-money laundering protocols. Several executives of the exchange were arrested by the US government over the same. The platform’s former CEO, Arthur Hayes was one among them. While Hayes found his way out following a $10 million bail, the trial of the other founders, Ben Delo well as Sam Reed is said to kickstart in March 2022.
As this case persists, the exchange went ahead and decided to pay the financial watchdogs a whopping $100 million. The CTFC shared an announcement revealing the same and the reason behind the penalty. The platform will reportedly be paying this amount for carrying out functions of a crypto platform along with anti-money laundering violations.
BitMEX settles with CTFC and FinCEN
Alongside the $100 million, BitMEX would have to recruit an independent consultant in order to carry out a historical analysis of all the transactions to look for any suspicious activity in the past that had been overlooked.
Acting Chairman Rostin Behnam addressed the same and stated,
“This case reinforces the expectation that the digital assets industry, as it continues to touch a broader pool of market participants, takes seriously its responsibilities in the regulated financial industry and its duties to develop and adhere to a culture of compliance. The CFTC will take prompt action when activities impacting CFTC jurisdictional markets raise customer and consumer protection concerns.”
Additionally, the five other companies part of the settlement were namely, HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited, and HDR Global Services (Bermuda) Limited.