Founders and executives charged
Four executives were charged under the bank secrecy act for failing to implement money laundering protocols. BitMEX is one of the largest crypto exchanges.
The news is weighing modestly on Bitcoin.
Audrey Strauss, the Acting United States Attorney for the Southern
District of New York, and William F. Sweeney Jr., Assistant
Director-in-Charge of the New York Field Office of the Federal Bureau of
Investigation (“FBI”), announced the indictment of Arthur Hayes,
Benjamin Delo, Samuel Reed, and Gregory Dwyer, charging the four with
violating the Bank Secrecy Act and conspiring to violate the Bank
Secrecy Act, by willfully failing to establish, implement, and maintain
an adequate anti-money laundering (“AML”) program at the Bitcoin
Mercantile Exchange or “BitMEX.” The case is assigned to United States
District Judge John G. Koeltl. REED was arrested in Massachusetts this
morning, and will be presented in federal court there. HAYES, DELO, and
DWYER remain at large.
I don’t see why this would necessarily hurt Bitcoin but other exchanges are surely sweating. The maximum penalty for each is 5 years in prison.