Michaela Alvez
HDR Global Trading Limited, the company behind the cryptocurrency exchange BitMEX, has been ordered to pay a $100 million fine and serve two years of unsupervised probation for breaching U.S. banking regulations.
In a January 15 hearing, U.S. District Court Judge John Koeltl, from the Southern District of New York, dismissed BitMEX’s claim that a prior $110 million fine adequately addressed its legal violations.
The sentencing follows approximately six months after the cryptocurrency exchange admitted to violating the U.S. Bank Secrecy Act (BSA) by operating without “any meaningful” Anti-Money Laundering (AML) program.
In July 2024, BitMEX dismissed the charges as “old news,” indicating it did not anticipate facing any further fines. However, the U.S. Attorney’s office argued that the company “flaunted” the requirements of the BSA by failing to establish an AML program with Know Your Customer (KYC) standards, instead only asking users for their email addresses.
In December 2024, the U.S. government submitted a sentencing request to the court, urging the judge to determine that BitMEX unlawfully earned $155 million from U.S. sources in connection with its violations of the BSA from 2015 to 2020.
The government also requested the imposition of a $417 million fine. However, during the sentencing hearing, the court dismissed all remaining charges.
“Whilst we are disappointed to learn of the imposition of an additional financial penalty, the amount is substantially less than what the Department of Justice have been pursuing us for over 3 years. This process has run on for years,” BitMEX said in a statement following the January 15 hearing.
BitMEX revealed that during the legal proceedings, the U.S. Department of Justice initially demanded more than $200 million as part of a proposed plea agreement settlement.
In 2022, BitMEX founders Arthur Hayes, Benjamin Delo, and Samuel Reed admitted guilt in an anti-money laundering negligence case. As part of their resolution, each was fined $10 million in civil penalties.
The recent sentencing is seen as a significant turning point in the lengthy legal battles involving BitMEX and its executives. After more than four years of ongoing litigation, the case appears to be nearing its conclusion.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
