BitMEX Co-Founders Receive Presidential Pardon
Trump Pardon of BitMEX Founders Sparks Controversy in Crypto Community
In a surprise move, former US President Donald Trump has pardoned the founders of BitMEX, the cryptocurrency derivatives exchange, just days after they pleaded guilty to charges related to their company's alleged failure to comply with anti-money laundering (AML) regulations.
Arthur Hayes, Ben Delo, and Samuel Reed, the co-founders of BitMEX, were charged in October 2020 with violating the Bank Secrecy Act (BSA) and operating an unregistered trading platform. The charges stemmed from allegations that the exchange failed to implement adequate AML controls, allowing illegal activities such as money laundering and terrorist financing to take place on the platform.
On Tuesday, Trump, in one of his final acts as President, issued a pardon to the BitMEX founders, citing their "good deeds" and "contributions to the cryptocurrency space." The move has sparked widespread outrage and criticism from many in the crypto community, who see the pardon as a slap in the face to regulators and a betrayal of the trust placed in the financial system.
"This pardon is a clear indication that the Trump administration is more interested in serving the interests of wealthy and powerful individuals than in upholding the rule of law," said a spokesperson for the Financial Action Task Force (FATF), a global anti-money laundering body. "It's a dangerous precedent that undermines the efforts of law enforcement agencies to combat financial crime."
The BitMEX founders had agreed to plead guilty to the charges in exchange for a reduced sentence. However, the pardon means that they will now avoid any criminal penalties, sparking concerns that it will embolden other financial criminals to ignore AML regulations.
The crypto community is also reeling from the news, with many calling for the BitMEX founders to be held accountable for their actions. "This pardon is a betrayal of the trust placed in the cryptocurrency space," said a spokesperson for the Crypto Users Group. "It sets a dangerous precedent and undermines the efforts of regulators to protect the integrity of the financial system."
The BitMEX founders' legal troubles began in October 2020 when they were charged with violating the BSA and operating an unregistered trading platform. The charges stemmed from allegations that the exchange failed to implement adequate AML controls, allowing illegal activities such as money laundering and terrorist financing to take place on the platform.
In the wake of the charges, BitMEX's parent company, HDR Global Trading, shut down the exchange and its subsidiaries. The company's assets were subsequently frozen, and the founders were forced to step down from their positions.
The pardon has sparked widespread outrage and criticism, with many calling for the BitMEX founders to be held accountable for their actions. The move has also raised questions about the Trump administration's commitment to combating financial crime and upholding the rule of law.