U.S. prosecutors have filed criminal charges citing four founders and managers of the BitMEX cryptocurrency exchange of neglecting to take adequate steps to prevent money laundering.
According to the U.S. Department of Justice and the Commodity Futures Trading Commission (CFTC), Arthur Hayes — along with co-founders Ben Delo and Samuel Reed — are involved in running an unregistered trading platform as well as breaking CFTC rules such as anti-money laundering and know-your-customer regulations.
The Department of Justice registered criminal charges against Hayes, Delo, Reed and BitMEX head of business development Greg Dwyer with breaking the Bank Secrecy Act. According to the DOJ press release, Reed was held in Massachusetts on Thursday morning “and will be presented in federal court there.”
The 40-page CFTC charge also mentions various companies such as HDR Global Trading Limited, BitMEX’s ancestor company, as well as 100x Holdings Limited, ABS Global Trading Limited, Shine Effort Inc Limited and HDR Global Services (Bermuda) Limited as defendants.