BitMEX hit with $100m fine over U.S. banking law violations
BitMEX hit with $100m fine over U.S. banking law violations
BitMEX, a prominent cryptocurrency exchange, has been ordered to pay a $100 million fine and will serve two years of unsupervised probation following a federal court decision. The ruling comes after the company pleaded guilty in 2022 to violating the U.S. Bank Secrecy Act (BSA) by operating without an effective Anti-Money Laundering (AML) program.
Judge John Koeltl of the U.S. District Court for the Southern District of New York delivered the sentence on Jan. 15. This decision concludes a lengthy legal battle between BitMEX’s parent company, HDR Global Trading Limited, and the U.S. Department of Justice (DOJ). The company had already faced significant legal consequences when it entered a guilty plea six months earlier, reports Cointelegraph.
BitMEX responded to the ruling with mixed sentiments, noting, “Whilst we are disappointed to learn of the imposition of an additional financial penalty, the amount is substantially less than what the Department of Justice has been pursuing us for over three years.”
Case background and implications
BitMEX’s legal troubles began in 2020, when U.S. authorities accused the exchange of operating outside regulatory frameworks, failing to implement adequate AML measures, and allowing transactions without verifying user identities. These shortcomings allegedly facilitated illicit financial activities, prompting a crackdown by federal agencies.
The $100 million penalty is viewed as a critical moment in regulatory enforcement within the cryptocurrency sector. The court also dismissed all other charges against the exchange at the government’s request, signaling the end of the DOJ’s broader case against BitMEX.
While BitMEX continues its operations under increased scrutiny, this judgment highlights the growing focus on regulatory compliance in the cryptocurrency industry. As authorities worldwide intensify oversight, exchanges may need to adopt more stringent internal controls to avoid similar penalties.
Read also: Bitfinex recovers nearly $12B in Bitcoin stolen in 2016 hack
