Arthur Hayes to serve 2-year probation owning up to BitMEX’s AML mishap

Bringing closure to the long-awaited judgement related to the wealth laundering activities implicit the BitMEX crypto exchange, 1 of the 4 national territory courthouses successful New York reportedly sentenced two-year probation and six months of location detention to laminitis and ex-CEO Arthur Hayes.

Arthur Hayes, on with the different BitMEX co-founders — Benjamin Delo and Samuel Reed — and the company’s archetypal non-employee Gregory Dwyer, pleaded blameworthy to the Bank Secrecy Act (BSA) violations connected Feb 24, admitting to “willfully failing to establish, instrumentality and support an Anti-Money Laundering (AML) programme astatine BitMEX.”

Indictment against BitMEX co-founders and employees for violating BSA. Source: Justice.gov

Pleading blameworthy to supporting wealth laundering is simply a punishable offense, often carrying a maximum punishment of 5 years situation time. However, some Hayes and Delo made their blameworthy pleas up of the March proceedings day and had agreed to wage $10 cardinal successful transgression fines each.

On April 7, Cointelegraph reported that Hayes voluntarily surrendered to US authorities successful Hawaii six months aft national prosecutors archetypal levied charges, to which his lawyers stated:

“Mr. Hayes voluntarily appeared successful tribunal and looks guardant to warring these unwarranted charges.”

According to the indictment, nationalist tribunal filings, and statements made successful court, Hayes was released aft posting a $10-million bail enslaved pending aboriginal proceedings successful New York. However, prosecutors from the Office’s Money Laundering and Transnational Criminal Enterprises Unit recovered the entrepreneurs to beryllium blameworthy of not implementing AML safeguards, including not fulfilling know-your-customer (KYC) obligations.

Despite the imminent anticipation of serving jailhouse time, owning up to the allegations resulted successful Hayes being sentenced to a location confinement condemnation that requires him to walk the archetypal six months of his condemnation from home. In addition, helium besides agreed to wage a good of $10 million.

Related: Blockchain and crypto tin beryllium a boon for tracking fiscal crimes

Busting the story related to the easiness of laundering wealth utilizing crypto, a caller investigation highlights the imaginable of blockchain exertion and crypto to way down fiscal crimes.

While galore projects wrong the crypto ecosystem were victims of targeted attacks, atrocious actors proceed to conflict erstwhile it comes to cashing retired the stolen funds.

Speaking to Cointelegraph, Dmytro Volkov, main exertion serviceman astatine crypto speech CEX.IO, said that the conception of crypto being chiefly utilized by criminals is outdated, adding:

“In the lawsuit of Bitcoin (BTC), whose blockchain ledger is publically available, a superior speech with a competent analytics squad tin easy show and thwart hackers and launderers earlier the harm is done.”