Cryptocurrency exchange BitMEX has pleaded guilty to a US criminal charge for failing to maintain an adequate anti-money-laundering (AML) program.
Once a leading platform in the crypto world, BitMEX admitted to violating the Bank Secrecy Act (BSA).
This which mandates financial institutions to implement measures to prevent money laundering.
Prosecutors accused BitMEX of flouting these regulations while knowingly engaging with US-based customers.
The guilty plea was entered on Wednesday, July 10, in a Manhattan federal court.
It follows earlier legal action against the exchange.
In 2021, BitMEX settled with US regulators, agreeing to pay $100 million.
The following year, three of its founders admitted related charges.
Each paid a $10 million fine.
BitMEX referred to the latest charge as “old news.”
“Today’s guilty plea indicates again the need for cryptocurrency companies to comply with U.S. law if they take advantage of the U.S. market”
The company wrote on X: “This is the same charge brought in 2020 against our founders relating to BitMEX’s operations up to September 2020.
“We have accepted the BSA charge.”
The firm intends to seek an expedited sentencing hearing.
It will argue against further fines.
Lawyers will cite the substantial amounts already paid by its founders and through previous settlements.
BitMEX said its compliance standards have significantly improved since the period in question.
The company was incorporated in the Seychelles.
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Prosecutors said BitMEX attracted US clients to boost revenue but failed to comply with US laws to prevent financial system misuse.
Founded in 2014, BitMEX ostensibly exited the US market in 2015 but implemented ineffective measures to prevent US residents from accessing its platform.
Prosecutors noted that prospective customers were sometimes only required to provide an email address for identity confirmation.
They also revealed that a BitMEX founder acquired a Hong Kong-based business that was used as a conduit for US dollar transactions.
Feds claim the founder misrepresented its true purpose to an unnamed Hong Kong-based bank.
This misconduct persisted until 2020.
US Attorney Damian Williams said: “Today’s guilty plea indicates again the need for cryptocurrency companies to comply with U.S. law if they take advantage of the U.S. market.”
