Bitmex Co-Founder Arthur Hayes Avoids Jail for Violating US Bank Secrecy Law

Bitmex co-founder Arthur Hayes won’t go to jail for breaking US bank secrecy law. Instead, the former CEO of the crypto exchange was sentenced to “six months house arrest and two years probation”. Hayes agreed to pay a $10 million fine.

Bitmex’s Arthur Hayes Sentenced

The US Department of Justice (DOJ) announced on Friday that the founder and former CEO of cryptocurrency derivatives exchange Bitmex has been convicted of violating the Bank Secrecy Act (BSA). Hayes pleaded guilty to violating the bank secrecy law in February.

The DOJ states:

Hayes, 36, of Miami, Florida, was sentenced to six months house arrest and two years probation. Hayes also agreed to pay a $10 million fine representing his monetary gain from the violation.

US attorney Damian Williams explained that while building a cryptocurrency trading platform “that earned him millions of dollars”, Hayes “deliberately defied US law that requires companies to do their part to help prevent crime and corruption”.

Williams added, “He intentionally failed to implement and maintain even basic anti-money laundering policies, which allowed Bitmex to operate as a platform in the shadows of the financial markets.”

Two other Bitmex co-founders, Benjamin Dalo and Sam Reed, have also pleaded guilty and are expected to be sentenced soon.

Like Hayes, the other two co-founders were also ordered to pay $10 million each in civil fines.

What do you think of Arthur Hayes’ sentence? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Comments are closed.