Arthur Hayes to serve 2-year probation owning up to BitMEX’s AML mishap

One of the four federal courthouses in New York sentenced Arthur Hayes, founder and former CEO, to two years probation and six months home detention as a final result of the long-awaited judgment regarding the money laundering activities relating to BitMEX crypto exchange.

Arthur Hayes and other BitMEX co-founders Benjamin Delo, Samuel Reed, and Gregory Dwyer, the first non-employee of the company, pleaded guilty on February 24 to violating the Bank Secrecy act (BSA). They admitted to “willfully failing” to set up, implement, and maintain an Anti-Money Laundering program at BitMEX.

BitMEX employees and co-founders are indicted for violating the BSA. Source: Justice.gov

Supporting money laundering is a serious offense that can lead to a five-year sentence. Hayes and Delo pleaded guilty to supporting money laundering before the March trial date. They had also agreed to $10 million each in criminal fines.

Cointelegraph reported on April 7th that Hayes had surrendered to US authorities at Hawaii six months ago, six months after federal prosecutors had first brought forth charges. His lawyers stated:

“Mr. “Mr.

Hayes was released following posting a $10 million bail bond in New York. Prosecutors from the Office’s Money Laundering and Transnational Criminal Enterprises Unit found Hayes guilty of failing to implement AML safeguards. This included not complying with know-your-customer obligations.

Hayes was sentenced to home confinement, which requires him to spend six months at home. Hayes also agreed to pay $10 million in fines.

Related: Blockchain and Crypto can help you track financial crimes

A new analysis dispels the myth that crypto makes it easy to launder money. It reveals the potential of crypto and blockchain technology to help track down financial crimes.

Although many projects in the crypto ecosystem were the victims of targeted attacks and are now unable to cash out the stolen funds, criminals continue to struggle.

Dmytro Volkov (chief technology officer at crypto exchange CEX.IO), stated that crypto is not primarily used for criminal purposes.

“In the case Bitcoin (BTC), which has its blockchain ledger publicly accessible, a serious exchange can easily monitor and thwart hackers and launderers before any damage is done.”

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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