BitMEX Agrees To Pay $100 Million To Settle U.S. Charges
- ByAyushi Ray | August 11, 2021
One of the largest virtual currency derivatives exchanges, BitMEX agrees to pay $100 Million to settle U.S. charges. The charges against them were that they had unlawfully accepted customer funds to trade cryptocurrencies when they were not registered to do so as well as their failure to conduct customer due diligence. The U.S. Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN) unit of the U.S. Treasury Department on Tuesday alleged that for six years, BitMEX sold cryptocurrency derivatives to U.S. customers without properly registering with U.S. authorities. BitMEX also failed to implement and maintain proper compliance programs to identify customers and prevent money laundering.
The exchange also failed to report suspicious activity, according to the U.S. authorities. There are other five companies who have been charged along with BitMEX, have also agreed to pay $80 million to settle the charges, with another $20 million suspended pending reviews. BitMEX, which did not admit or deny the findings, said it has made a series of moves to boost its compliance. “Comprehensive user verification, robust compliance, and anti-money laundering capabilities are not only hallmarks of our business – they are drivers of our long-term success,” Alexander Höptner, chief executive officer of BitMEX, said in a statement.
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