Key Takeaways
- Trump pardoned three BitMEX co-founders and one former executive.
- They had pleaded guilty to Bank Secrecy Act violations and faced fines and probation.
- BitMEX previously paid $100 million to settle related civil charges.
President Donald Trump has granted full pardons to three co-founders of the global Bitcoin exchange BitMEX — Arthur Hayes, Benjamin Delo, and Samuel Reed — as well as former head of business development Gregory Dwyer, according to the White House.
Guilty pleas & violations
All four had pleaded guilty to violating the Bank Secrecy Act for failing to implement anti-money laundering (AML) and know-your-customer (KYC) programs.
In addition to criminal probation sentences, the men had faced fines, including $30 million collectively and $150,000 individually for Dwyer.
Allegations against BitMEX
Federal prosecutors alleged the exchange knowingly allowed U.S. customers to trade without AML compliance, calling BitMEX a “money laundering platform” and labeling its supposed withdrawal from the U.S. market “a sham.”
Sentences imposed
Hayes, the former CEO, was sentenced to six months of home confinement and two years’ probation.
Delo received 30 months’ probation, Reed was sentenced to 18 months, and Dwyer to 12 months.
Delo’s statement
In a statement following the pardon, Delo said:
This full and unconditional pardon by President Trump is a vindication of the position we have always held – that BitMEX, my co-founders and I should never have been charged with a criminal offense through an obscure, antiquated law.
Context of the pardons
The pardons come just over three months after BitMEX agreed to pay $100 million in penalties over related violations.
Regulatory implications
The case had drawn attention as a high-profile example of regulatory enforcement in the Bitcoin sector.
