The founder of BitMEX will have to comply with court procedures and any judgments under the terms of the bail agreement
9. Oktober 2020
October has been a dramatic month for the top officials of the BitMEX derivatives cryptoexchange, whose founders are facing multiple accusations from US authorities.
The founder of BitMEX will have to comply with court procedures and any judgments under the terms of the bond agreement.
BitMEX co-founder and former chief technical officer Samuel Reed has signed an unsecured summons for his release from custody pending legal proceedings.
Reed was arrested by the U.S. Department of Justice in Massachusetts on October 1 for violating money laundering rules in violation of the Bank Secrecy Act, as well as illegally offering derivatives trading to U.S. retail customers.
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Reed’s co-founders and colleagues Arthur Hayes, Ben Delo, and Gregory Dwyer, all charged with the same charges, remain „at large,“ according to the Justice Department.
According to court documents, which were approved on October 1, Reed’s $5 million bail will be forfeited if he fails to appear in court, or fails to surrender to serve any sentence the court may impose. Under the terms of the defendant’s settlement, Reed has deposited USD 500,000 in cash with the court.
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In the Justice Department charges, Reed, Hayes, Delo and Dwyer were accused of operating an „alleged offshore cryptoexchange, while willfully failing to implement and maintain even basic anti-money laundering policies. In doing so, they allegedly allowed BitMEX to operate as „a platform in the shadows of the financial markets.
Along with the Justice Department’s allegations, the U.S. Commodity Futures Trading Commission filed a civil lawsuit in the Southern District of New York against Reed, Hayes, Delo and several BitMEX-affiliated corporate entities.
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Yesterday, one of these entities, the operator of BitMEX 100x Group, announced that the three co-founders will no longer perform executive functions and reorganized the staff to replace them with immediate effect. Dwyer, who was involved in the Department’s action but not the CFTC, will take a leave of absence from his role as head of business development.
Following news of the charges, some crypto-commentators have criticized BitMEX for damaging the reputation of the industry as a whole and potentially hardening the regulators‘ stance toward the sector.