Bitmex has been ordered to pay a $100 million fine after a protracted legal battle stemming from violations of U.S. money-laundering regulations.
Bitmex Settles for $100M in Money-Laundering Case After DOJ Allegedly Demanded $420M
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Bitmex Hit with Additional $100 Million Fine Over Bank Secrecy Act Breach
In July 2024, HDR Global Trading Limited, the operator behind the Bitmex exchange, admitted guilt in contravening the U.S. Bank Secrecy Act (BSA). The fine marks the culmination of a series of legal challenges that have embroiled the company in a dispute with the U.S. Department of Justice (DOJ).
While Bitmex acknowledged the penalty, it noted that the amount was significantly reduced from the $420 million initially pursued by the DOJ. “This process has run on for years, during which the DOJ first asked for over USD 200 million of new money to settle a plea deal – once we refused this ridiculous offer, they then sought a penalty of approximately USD 420 million in the sentencing proceedings,” the crypto exchange said.
Following the ruling, Bitmex expressed dissatisfaction with the outcome but noted that the imposed fine was far below earlier demands. Attorneys for the company initially argued that a prior $110 million penalty, coupled with guilty pleas from the company’s co-founders, Benjamin Delo and Arthur Hayes, should adequately address the violations spanning 2015 to 2020.
In the announcement, Bitmex further highlighted the strides it has made in enhancing its compliance protocols. These measures include the integration of “best-in-class” Know Your Customer (KYC) and Anti-Money Laundering (AML) systems. The exchange claims these upgrades have been well-received by its user base, business partners, and regulatory bodies.
Despite the legal settlement, Bitmex maintains that the charges are dated, citing comments it made in July 2024 when it pled guilty to one count of violating the BSA. The company affirmed its commitment to innovation, emphasizing its focus on delivering premium crypto products and services to its customers. Bitmex concluded by reiterating its dedication to remaining a leading crypto derivatives exchange, pointing to its track record of market confidence, operational resilience, and continuous product evolution.
