BitMEX previous executive Gregory Dwyer has actually pleaded guilty to violating the Bank Secrecy Act, according to the U.S. Attorney for the Southern District of New York.
Dwyer, who worked as the Head of Business Development at the crypto exchange, was among BitMEX’s very first workers and has actually now confessed that the exchange stopped working to “establish, implement, and maintain an anti-money laundering (“AML”) program.”
According to the U.S. Attorney, Damian Williams, Dwyer pleading guilty now suggests that the federal government has actually been able to get judgments versus 4 essential executives of BitMEX, consisting of the 3 co-founders, for intentionally violating the anti-money laundering laws. Williams stated:
“Today’s plea reflects that employees with management authority at cryptocurrency exchanges, no less than the founders of such exchanges, cannot willfully disregard their obligations under the Bank Secrecy Act.”
Authorities formerly pursued BitMEX in 2020, with the FinCEN, DOJ, and CFTC filing croak and civil actions versus the business for enabling U.S. homeowners to trade crypto. However, it has no license to run in the nation and has bad KYC requirements.
The charges led to the business paying a $100 million fine and the co-founders and executives leaving the company’s operations.
The 3 creators who have actually currently pleaded guilty are Samuel Reed, Benjamin Delo, and Arthur Hayes. The 3 took plea arrangements with the federal government for minimized sentences and fines.
Dwyer likewise appeared to have actually hauled the exact same line. He has actually concurred to pay a fine of $150,000, which represents the gains he made from the infraction.
However, sentencing will be identified by judge John G. Koeltl who likewise sentenced the 3 co-founders. The optimal sentence for the offense is 5 years, however numerous anticipate Dwyer will get a lighter sentence.
Meanwhile, the federal government’s persistence on bringing everybody associated with the BitMEX case to justice sends out a caution to the entire crypto market.
SEC Commissioner Hester Pierce — widely referred to as Crypto Mom — stated in 2020 that the arrest of BitMEX executives is a message that’s “fairly loud and clear on the AML/KYC front” for the crypto market.