Bitcoin Mercantile Exchange (BitMEX) founders Arthur Hayes and Benjamin Delo, have pleaded guilty to violating the Bank Secrecy Act (BSA) by failing to develop and maintain an AML program. BitMEX is an online cryptocurrency derivatives exchange, functional only in the US at the time of the offense. Hayes and Delo will separately pay a $10 million criminal fine.
During 2015-20, Hayes and Delo deliberately caused BitMEX to fail to develop and maintain AML procedures, including one for identity verification. This failure essentially turned BitMEX into a platform for ML and sanction violation.
Moreover, Hayes and Delo misrepresented that BitMEX only served non-US customers when that was untrue. The controls set up to prevent US trading were ineffective. Furthermore, Hayes and Delo actively looked for US-based customers and marketed their platform among this demographic.
Source: US Department of Justice