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The Legal Battle Between the US Government and BitMEX
In a significant legal development, former US President Donald Trump has extended presidential pardons to the three co-founders of the prominent cryptocurrency exchange, BitMEX. This decision marks the end of a protracted legal dispute with the US Department of Justice (DOJ), which had found BitMEX and its co-founders guilty of breaching the Bank Secrecy Act.
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Background of the Case
Back in 2020, the DOJ accused BitMEX of operating a cryptocurrency trading platform that inadequately enforced Anti-Money Laundering (AML) protocols, thus violating the Bank Secrecy Act. According to US prosecutors, BitMEX intentionally solicited business from US markets by only requiring users to provide an email address, sidestepping the standard know-your-customer (KYC) procedures.
Legal Proceedings and Outcomes
In 2022, the co-founders of BitMEX—Arthur Hayes, Benjamin Delo, and Samuel Reed, who launched the exchange in 2014—pled guilty to the DOJ’s charges. Alongside them, Gregory Dwyer, former Head of Business Development, faced similar charges. All individuals received varying probation terms and were collectively fined over $30 million.
Subsequently, BitMEX as a corporation admitted guilt to a single count of violating the Bank Secrecy Act. This resulted in a sentence of two years’ probation and a $100 million fine. However, as reported by local media outlet USA TODAY, President Trump has issued pardons for all four individuals, absolving them from all convictions and penalties.
Reactions to the Presidential Pardons
Following Trump’s act of clemency, Arthur Hayes expressed his gratitude on social media platform X with a succinct “Thank You.” Meanwhile, Benjamin Delo released a statement asserting BitMEX’s innocence, maintaining that the charges were unjust, citing the use of an outdated law.
Trump’s Pro-Crypto Policies: A Continued Trend
The pardoning of the BitMEX co-founders is part of a broader pattern of crypto-friendly actions taken by the Trump Administration since its inauguration. In addition to granting clemency to Hayes and his colleagues, President Trump also pardoned Ross Ulbricht, the Silk Road founder, who had been serving a double life sentence without parole for over 11 years.
Further Crypto-Friendly Developments
Under Trump’s administration, the US Securities and Exchange Commission (SEC) has halted enforcement actions against several crypto firms, including Coinbase, Robinhood, Gemini, and Ripple. These moves suggest a favorable stance towards the cryptocurrency industry by the government. However, despite these positive developments, the crypto market faces challenges due to new international trade policies.
At the time of this report, the cryptocurrency market is valued at approximately $2.68 trillion. This follows a 4% decrease in value, coinciding with the US’s decision to impose a 25% tariff on auto imports from Mexico and China.
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