US prosecutors recommend minimum 1 year prison sentence for BitMEX co-founder Arthur Hayes

U.S. Prosecutors person filed a sentencing proposal successful the lawsuit against BitMEX co-founder Arthur Hayes seeking minimum one-year imprisonment.

The prosecutors submitted the condemnation proposal to U.S. District Judge John Koeltl successful Manhattan connected May 12.

This proposition comes aft Hayes pled blameworthy to violating the U.S. slope secrecy law. His sentencing is acceptable for aboriginal successful May. Before this, Hayes signed a plea woody agreeing to service six to 12 months successful prison. The plea woody besides progressive him paying a $10 cardinal fine.

Before accepting the plea deal, Hayes faced up to 5 years successful situation for each number of his October 2020 indictment.

However, the prosecution said:

There is nary question that this lawsuit has been highly intimately watched successful the cryptocurrency industry. Compliance by cryptocurrency platforms volition beryllium unattainable if their operators judge determination are nary meaningful repercussions for failing to comply with the law.

Before this, Hayes’ lawyers requested that helium service nary jailhouse time. Additionally, they appealed to Judge Koeltl to fto Hayes unrecorded overseas and question freely.

Justifying their recommendation, Hayes’ lawyers argued that:

This is simply a landmark lawsuit that has already had an bonzer and well-publicized interaction connected Mr. Hayes’s idiosyncratic beingness and the BitMEX concern that helium co-founded.

On the different hand, the probation bureau said Hayes should beryllium fixed a two-year probation sentence.

BitMEX co-founders tried to evade regulatory scrutiny

According to the prosecutors, Hayes and his co-defendants, Benjamin Delo and Samuel Reed, besides BitMEX co-founders, did not integrate programs to forestall wealth laundering into BitMEX. Additionally, the prosecutors claimed that the trio established BitMEX successful Seychelles to dodge regulatory scrutiny.

BitMEX denied the allegations astatine first. However, a radical of firms that operated the speech agreed to wage $100 cardinal to extremity claims that they enabled amerciable trades for years. Moreover, BitMEX said it had enhanced its compliance programme and would beryllium pleased to determination beyond the investigations.

Delo and Reed besides agreed to wage $10 cardinal each. Their sentencing hearings are acceptable for June 15 and July 13, respectively. 

Unlike BitMEX’s co-founders, Gregory Dwyer, the exchange’s archetypal worker and erstwhile Head of Business Development, declined charges against him. His proceedings is acceptable for August 2022.