Cryptocurrency trading platform BitMEX has admitted to breaking US laws designed to prevent money laundering.
BitMEX’s Illegal Activities
The US Department of Justice (DOJ) says BitMEX, founded in 2014, failed to put in place proper systems to stop money laundering. The company, along with its executives, were accused of:
- Ignoring US laws: They didn’t register with the Commodity Futures Trading Commission (CFTC) as required.
- No Anti-Money Laundering Program: They didn’t create a system to prevent money laundering.
- Weak Know Your Customer (KYC) Rules: They only asked customers for an email address, instead of proper identification, which is against the law.
BitMEX Executives Knew the Risks
The DOJ says BitMEX executives were aware that they were breaking the law. They knew that customers in the US were using their platform and that their “anti-money laundering” policies were basically useless.
Serious Threat to US Financial System
US Attorney Damien Williams said BitMEX’s actions were a serious threat to the US financial system. He said BitMEX allowed for large-scale money laundering and helped people avoid sanctions, which can have a big impact on the economy.
BitMEX Faces Consequences
BitMEX could face a maximum penalty of five years in prison and a fine for breaking the Bank Secrecy Act.
Previous Guilty Plea
Last year, BitMEX executive Gregory Dwyer also admitted to breaking similar laws.
The Importance of Compliance
This case shows that cryptocurrency companies need to follow US laws, especially when they operate in the US market.
