Trump Grants Clemency to BitMEX Founders Convicted of Money Laundering
Washington, D.C. – In a surprising move, former President Donald Trump has issued pardons to the three founders of the BitMEX cryptocurrency exchange, who were previously convicted on charges of money laundering. The decision, which was made public through a source familiar with the matter, highlights Trump’s ongoing engagement with issues surrounding the cryptocurrency industry.
The individuals receiving pardons—Arthur Hayes, Benjamin Delo, and Samuel Reed—had each pleaded guilty in February and March of 2022 to violating the Bank Secrecy Act. The charges stemmed from their failure to implement adequate anti-money laundering policies at BitMEX, which has been described as a platform that operated in the shadows of financial markets.
Trump signed the pardons on Thursday, and the action went largely unpublicized until after the fact. “This full and unconditional pardon by President Trump is a vindication of the position we have always held,” Delo stated in his response. “BitMEX, my co-founders, and I should never have been charged with a criminal offense through an obscure, antiquated law.”
Delo expressed gratitude towards Trump for the pardon, asserting that recent years had been filled with distress due to the implications of the conviction. He indicated that this alleviation would allow him to focus on his philanthropic endeavors without the shadow of an unfounded conviction.
Background on BitMEX
The BitMEX exchange, known for its cryptocurrency derivatives trading, faced scrutiny for its lack of compliance with financial regulations. In January, the platform was fined $100 million for its willful failure to establish a proper anti-money laundering program and its neglect in adhering to ‘Know Your Customer’ (KYC) guidelines. Federal prosecutors have characterized the exchange as a “money laundering platform,” highlighting its operations from at least September 2015 until the founders’ indictment in September 2020. Court documents reveal that BitMEX advertised features that attracted users by underscoring lenient verification processes. “No real name or other advanced verification is required on BitMEX,” one advertisement noted, further revealing concerns about potential criminal activities facilitated through the platform.
Despite the convictions, Delo, Hayes, and Reed contend that the government’s actions against them were part of a broader political narrative regarding cryptocurrency regulations. Reed, for instance, had previously been informed of potential illegal activities on the platform and failed to file a suspicious activity report, raising further suspicion about the operations at BitMEX.
Implications of the Pardons
The pardons come at a time when cryptocurrencies are facing increased regulatory scrutiny in the United States. As the digital currency landscape continues to evolve, the role of exchanges like BitMEX in preventing illicit activities and ensuring compliance with financial laws remains a critical focus for government authorities. Trump’s decision is likely to reignite discussions around the regulatory framework governing the cryptocurrency industry and may influence future policies and enforcement actions.
As more information surrounding the pardons and their impact unfolds, the cryptocurrency community is keenly observing how this development may shape the ongoing dialogue about regulation and compliance in the fast-evolving digital currency marketplace.
Share this article:
