One of the world’s largest trading platforms for crypto derivatives, BitMEX, said on Tuesday that it would pay $100 million to settle allegations with the Commodities Futures Trading Commission (CFTC) and Financial Crimes Enforcement Network (FinCEN). It is one of the biggest agreements ever against a crypto exchange as regulators tighten the security in the crypto industry.
BitMEX allegedly allowed illegal trade for years.
According to the reports, BitMEX allowed years of illegal trades. This means it violated anti-money laundering rules. According to CFTC, BitMEX broke laws by letting U.S. residents trade cryptos from November 2014 to October 2020. In addition, the settlement orders BitMEX to pay $50 million to the CFTC. Also, the exchange has to pay up to $50 million for payments under a similar deal with FinCEN. Following this, BitMEX said it prohibits anyone based in the U.S. from accessing its trading platform. In a statement, BitMEX stressed it had enhanced its compliance program in recent years.
BitMEX says they will continue to actively engage with regulators around the world.
BitMEX CEO Alexander Hoptner said, “We take our responsibilities extremely seriously, and will continue to actively engage with regulators around the world to ensure that we play a positive role in helping to shape the future of this extraordinary asset class.” However, the resolution doesn’t involve the founders of BitMEX. This includes Arthur Hayes, Benjamin Delo, and Samuel Reed. All have pleaded not guilty in a separate Justice Department case that blames them for violating the Bank Secrecy Act. BitMEX had allegedly allowed U.S. customers to trade crypto derivatives despite CFTC and FinCEN warnings.