The CFTC charges Arthur Hayes and others at BitMEX with illegally operating a derivatives trading platform and violating anti-money laundering (AML) regulations. We have been following Hayes' curious behavior and BitMEX's problems for months at Inside Cryptocurrency. BitMEX claims to process over $1.7b in daily derivatives transactions.
- The CFTC has filed its civil enforcement action in the U.S. District Court for the Southern District of New York, charging five entities and three individuals from BitMEX with operating an unregistered trading platform and violating multiple CFTC regulations.
- Among those charged are company owners Arthur Hayes, Ben Delo, and Samuel Reed, as well as "a maze of corporate entities" including HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited, and HDR Global Services (Bermuda) Limited (BitMEX).
- Hayes remains at large.
- The CFTC alleges that BitMEX has earned at least $1b in fees while conducting "significant aspects of its business" from U.S. residents.
- A related criminal action by the U.S. Attorney for the District of New York indicts Hayes and three others on federal charges of violating the Bank Secrecy Act.
- HDR Global Trading Limited, a defendant and the parent company of BitMEX, has vowed to fight the charges.