FinCEN and the CFTC will get $100 Million in Fines from BitMEX

Aug 11, 2021

https://liquidity-provider.com/app/uploads/2021/08/untitled-design-8.png

To settle a dispute with FinCEN and CFTC, a crypto derivatives exchange BitMEX has agreed to pay up to $100 million.

The U.S. District Court ruled that ABS Global Trading Limited, 100x Holding Limited, Shine Effort Inc Limited and HDR Global Trading Limited were charged with illegal operation of the BitMEX platform.

The settlement agreement states that BitMEX will pay a $100 million monetary fine to FinCEN and the CFTC for anti-money laundering violations and illegal operation of the cryptocurrency trading platform. In addition, the company will be required to engage an independent expert to conduct a historical analysis of its transactions.

“As the digital assets industry continues to touch a broader pool of market participants, this case reinforces the expectation that it takes seriously its responsibilities in the regulated financial industry, as well as its duties to develop and adhere to a culture of compliance,” said acting CFTC chair Rostin Behnam. “When operations affecting CFTC jurisdictional markets raise customer and consumer protection concerns, the CFTC will act quickly.”

Although the settlement emerged from a lawsuit against former CEO Arthur Hayes and other company officials, the defendants could still face trial on suspicion of violating the Bank Secrecy Act. Hayes, Ben Delo and Sam Reed, according to a spokesman for BitMEX's co-founders, were not parties to the CFTC and FinCEN agreement. After surrendering to U.S. authorities in April, Hayes was released on $10 million bail, and the trial of some of the former executives is scheduled to begin in March 2022.

The Financial Crimes Enforcement Network said that "BitMEX allowed customers to access its platform and trade derivatives without proper customer due diligence." FinCEN found that BitMEX failed to implement appropriate procedures and mechanisms to verify customers who use a virtual private network to access the trading platform and circumvent Internet protocol monitoring, despite BitMEX's public statement that its platform does not do business with U.S. persons.

BitMEX failed to maintain appropriate anti-money laundering measures and neglected to disclose 588 instances of suspicious behavior to FinCEN for more than six years, according to FinCEN. The exchange allegedly transacted at least $209 million with "known darknet marketplaces or unregistered money services firms providing mixing services," according to FinCEN.

BitMEX stated steps to strengthen its anti-money laundering and trade surveillance systems after the accusations were initially filed in October 2020. The exchange stated in January that it had strengthened its Know Your Customer capabilities, claiming that it had canceled all previously open positions held by unverified users.

“We're relieved to have this behind us,” BitMEX CEO Alexander Höptner stated. “We take our duties very seriously, and we will continue to work closely with authorities across the world to ensure that we contribute positively to the development of this wonderful asset class.”

Subscribe Our Newsletter

A Job Slowdown Could Be Here. What to Watch in Today’s Unemployment Rate Calculation.

Milena

A Job Slowdown Could Be Here. What to Watch in Today’s Unemployment Rate Calculation.

While by unemployment rate calculation employment growth likely cooled last month, the labor market remains strong in the face of signs of economic softening.

Companies
The Reopening of China is Good for Stocks Abroad

Milena

Expert Opinion: The Reopening of China is Good for Stocks Abroad

As more Chinese tourists choose to travel after Covid, Korea and Thailand might profit. This would boost their economies overall and aid hotels, duty-free shops, and convenience stores.

Stocks
Alexander

From Gold to Index Funds and Crypto: Where to Invest in 2023 for Long Term?
We are all familiar with the phrase "time is money", but usually without realising how true it really is. This has been proven repeatedly for those who have invested wisely in the past three decades.

discover
Best Investment Strategies For Beginners.

Tamta

Best Investment Strategies For Beginners

Reaching financial security right away can be tricky, especially when trying to cover everyday expenses and dealing with inflation. But once you've got a handle on your monthly bills and saved some money for emergencies, it's time to start investing.

Investing

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries b2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Alexander

    Best Bitcoin Wallets in 2023: Comparing Features, Security, and Usability

    Best Bitcoin Wallets in 2023

    Alexander

    Top Rising NFT Artists to Watch Out for in 2023 And Beyond

    Top Rising NFT Artists to Watch Out for in 2023

    Alexander

    Insuring Your Future: What Type of Insurance to Buy?

    Insuring Your Future: What Type of Insurance to Buy

    Alexander

    Is IUL a Good Investment Strategy? — A Guide for Beginner Investors

    Is IUL a Good Investment Strategy? — A Guide for Beginner Investors

    Alexander

    Are Crypto Wallets Safe? — Tips to Ensure Maximum Protection of Your Digital Assets.

    Are Crypto Wallets Safe? — Tips to Ensure Maximum Protection

    Alexander

    Roth IRA Guide: What It Is and What You Need to Know.

    Roth IRA Guide: What It Is and What You Need to Know

    Alexander

    From Gold to Index Funds and Crypto: Where to Invest in 2023 for Long Term?

    From Gold to Index Funds and Crypto: Where to Invest in 2023

    Alexander

    Understanding Algorithmic Trading: A Guide for Beginners

    Understanding Algorithmic Trading: A Guide

    Alexander

    Stop Vs. Stop-Limit Order: How Do They Differ?

    Stop Vs. Stop-Limit Order: How Do They Differ

    Alexander

    Invest in the Intelligent Future: The Best AI Stock Market Leaders of 2023

    Invest in the Intelligent Future: The Best AI Stock Market Leaders of 2023

    Deborah Middleton

    How MEC Rules Can Impact Your Life Insurance Policy

    How MEC Rules Can Impact Your Life Insurance Policy.

    Deborah Middleton

    Navigating the Ethical Landscape of AI: Challenges and Solutions

    Navigating the Ethical Landscape of AI: Challenges and Solutions

    Deborah Middleton

    Managing Your Financials The Right Way – A Startup Guide 

    Managing Your Financials The Right Way - A Startup Guide

    Anna

    A Beginner Guide To The Crypto Analysis Tools.

    A Beginner Guide To The Crypto Analysis Tools.

    Anna

    A Brief Introduction to Scalping

    A Brief Introduction to Scalping.

    Anna

    How to Invest in Stocks: A Beginner’s Guide

    How to Invest in Stocks: A Beginner’s Guide

    Anna

    Tips On Finding Crypto Liquidity Providers In 2023

    Tips On Finding Crypto Liquidity Providers In 2023.

    Anna

    Forex Liquidity in 6 Questions and Tips on How to Become Successful in Trading

    Forex Liquidity in 6 Questions and Tips on How to Become Successful in Trading

    Anna

    A Brief and Comprehensive Guide to Spot Trading.

    A Brief and Comprehensive Guide to Spot Trading.

    Anna

    What is The Difference Between Liquidity Provider and Liquidity Aggregator?

    What is The Difference Between Liquidity Provider and Liquidity Aggregator?

    Tamta

    What Is SWIFT Banking System?

    What Is SWIFT Banking System?

    Tamta

    How Liquidity Providers Drive The Foreign Exchange Market

    How Liquidity Providers Drive The Foreign Exchange Market

    Tamta

    How to Start Investing In Crypto

    How to Start Investing In Crypto

    Tamta

    5 Best Crypto CFD Liquidity Providers 2023

    5 Best Crypto CFD Liquidity Providers 2023.
    Latest News - Liquidity Provider: Business & FinTech Media
    • News
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
    [email protected]

    © 2023 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site.