August 11, 2021
BitMEX has confirmed that it has reached a resolution with both the United States Commodity Futures Trading Commission (CFTC) and Financial Crimes Enforcement Network (FinCEN) in relation to investigations by both agencies.
BitMEX agreed to pay as much as US$100 million to resolve the charges, according to a company blog post.
Alexander Höptner, Chief Executive Officer of BitMEX, said: “Today marks an important day in our company’s history, and we are very glad to put this behind us. As crypto matures and enters a new era, we too have evolved into the largest crypto derivatives platform with a fully verified user base. 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”.
He added: “We take our responsibilities extremely seriously, and will continue to actively engage with regulators around the world to ensure that we play a positive role in helping to shape the future of this extraordinary asset class”.
BitMEX is currently embarking on an ambitious business transformation under its ‘Beyond Derivatives’ strategy, adding five new global business segments. These are Spot, Brokerage, Custody, Information Products, and Academy. Key hires and appointments have been made for each.
In October last year, the CFTC charged several executives, including then-CEO and co-founder Arthur Hayes, with operating an unregistered trading platform and violating know-your-customer and AML requirements. Hayes surrendered himself in April.
In 2020 and 2021, BitMEX made significant progress in areas of user verification, compliance, and market integrity, the company said.