- Head of business development Gregory Dwyer pleaded guilty to violating the Bank Secrecy Act
- Absence of KYC rules at the exchange enabled it to flourish as a hotbed for criminal activity
An executive at BitMEX offshore crypto derivatives exchange pleaded guilty for violating the US federal Bank Secrecy Act, the US Attorney for the Southern District of New York reported on Monday, cited by CoinDesk.
Head of business development Gregory Dwyer pleaded guilty to violating the anti-money laundering law for "failing to establish, implement, and maintain an anti-money laundering program” at BitMEX.
Cofounders also pleaded guilty
Previously, the US Attorney ruled against the founders of the exchange, Benjamin Delo, Arthur Hayes, and Samuel Reed.
According to prosecutors, the absence of know-your-customer (KYC) rules at the exchange enabled it to flourish as a hotbed for criminal activity, including evading sanctions and money laundering.
US Attorney Damian Williams commented:
Today’s plea reflects that employees with management authority at cryptocurrency exchanges, no less than the founders of such exchanges, cannot willfully disregard their obligations under the Bank Secrecy Act.
Prior civil and criminal charges
The DOJ, CFTC, and other watchdogs pressed civil and criminal charges against BitMEX when the company allowed US residents to trade crypto derivatives on its platform two years ago. They could do this without having to provide a US address.
The charges led to a leadership reshuffle at BitMEX even though the government agencies ended up settling with the then-promising exchange for $100 million last year.
Dwyer will pay a fine of $150,000 as per the plea agreement’s terms. His crime carries a sentence of up to five years in prison.
Contributors
