Bitcoin Mercantile Exchange (BitMEX) employee pleads guilty to violation of Bank Secrecy Act!

10 August 2022 Internet, IT & e-Discovery Blog Blog

BankInfoSecurity.com reported about BitMEX that “A high-ranking employee at a cryptocurrency exchange with U.S. operations has pleaded guilty to violating the Bank Secrecy Act [BSA]. The law requires financial institutions to help U.S. government agencies prevent money laundering.”  The August 9, 2022 article entitled “Fresh Guilty Plea Follows Crackdown on BitMEX Exchange” included these comments:

Gregory Dwyer, 39, of Australia and Bermuda, appeared in Manhattan federal court Monday. He pleaded guilty before U.S. District Judge John G. Koeltl to helping operate Bitcoin Mercantile Exchange, or BitMEX, and failing to ensure it complied with anti-money laundering and "know your customer" rules, as required under the BSA.

As part of his plea, Dwyer agreed to pay a $150,000 fine. He has yet to be sentenced and faces up to five years in prison.

BitMEX allows for the trading of crypto derivatives, including futures contracts, tied to the value of cryptocurrencies, including Bitcoin.

This is very bad news for the public confidence in BitMEX!

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