BitMEX Parent Company Fined $100 Million for Money-Laundering Violations
HDR Global Trading Limited, the parent company of BitMEX, has been fined $100 million for violating US money laundering laws. This ruling by Manhattan federal judge John G. Koeltl follows an investigation into the exchange’s activities from 2015 to 2020.
- BitMEX pleaded guilty to violating the Bank Secrecy Act (BSA).
- Founders Arthur Hayes and Benjamin Delo previously pleaded guilty in 2022, each paying $10 million in fines.
- The judge rejected the defense's argument that previous fines sufficed as punishment.
- The US Department of Justice initially proposed a settlement exceeding $200 million, which BitMEX rejected.
- The DOJ subsequently increased the penalty demand to around $420 million.
Despite the ruling, BitMEX stated it had significantly improved compliance standards, including enhanced KYC and AML systems. The exchange claimed the BSA charge is outdated and expressed a focus on innovation moving forward.