Arthur Hayes, Benjamin Delo and Samuel Reed, co-founders of crypto derivatives exchange BitMEX, must pay $10 million each in fines as part of a settlement with the US Commodity Futures Trading Commission (CFTC), the Southern District Court of New York has ordered.
The CFTC filed a complaint back in October 2020 against BitMEX and its owners accusing them of operating an unregistered trading platform and violating rules regarding the conduct of KYC and AML proceedings.
In August of the following year, BitMEX settled a civil lawsuit with the US authorities and the company agreed to pay $100 million.
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According to the press release shared by the CFTC, the new penalties stem from the lawsuit filed in 2020.
Caroline Pham, commissioner of the regulator, has said in separate statements:
"By providing individual accountability to enforce the registration, market conduct and anti-money laundering rules that are fundamental aspects of the US regulatory framework, the CFTC is ensuring that BitMEX management is held accountable beyond last year's settlement agreement with the corporate defendants."
Parallel to this lawsuit, a case brought by the US Department of Justice against the exchange is ongoing. In October 2020, BitMEX's co-founders and its top executive Greg Dwyer were charged with violating the Bank Secrecy Act (BSA).
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