The United States government has a case with the Bitmex co-founders, and two of them have previously surrendered. The third co-founder and CEO, Arthur Hayes, has done the same and is set to face charges in the United States.
Arthur Hayes finally surrenders
Bitmex CEO Arthur Hayes has surrendered to the United States authorities. This is coming months after he was charged with violation of the Bank Secrecy Act. According to the Bloomberg report, Hayes surrendered to the authorities in Hawaii yesterday after previously promising that he would surrender on said date.
Hayes had been negotiating with the US government over the past few months and agreed to surrender on April 6. His representatives proposed a $10 million bond while living in Singapore during the negotiation.
The United States Department of Justice and the Commodity Futures Trading Commission named Hayes as a defendant in twin lawsuits last year. According to the lawsuits, authorities claimed that BitMEX knowingly provided retail investors in the United States access to illegal options and leveraged trading. The platform also failed to implement proper know-your-customer checks into the platform, which is a violation of the Bank Secrecy Act.
In the lawsuit, the CFTC stated that “the CFTC brings this action pursuant to Section 6c of the Act, 7 U.S.C. § 13a-l (2018), to enjoin Defendants’ unlawful acts and practices and to compel their compliance with the Act. In addition, the CFTC seeks civil monetary penalties and remedial ancillary relief, including, but not limited to, trading and registration bans, disgorgement, restitution, pre-and post-judgment interest, and such other relief as the Court may deem necessary and appropriate.”
Other co-founders already surrendered
The other two co-founders Ben Delo and Samuel Reed, have already surrendered to the US authorities. Reed was arrested in Massachusetts after the indictment but was released on bail. Delo surrendered to the authorities last month, traveling to the US from the UK to voluntarily surrender. The co-founder pleaded not guilty and was later released on a $20 million bail.
The authorities are still looking for the exchange’s first employee, Gregory Dwyer, who was also charged with the same crime. However, Dwyer has taken residence in Bermuda and hasn’t shown any intention to surrender soon.