Arthur Hayes will serve two years probation for his involvement in the BitMEX money laundering crime

Concluding the long-awaited trial related to money laundering activities at cryptocurrency exchange BitMEX, one of the four federal district courts in New York reportedly sentenced founder and former CEO Arthur Hayes to two years probation and six months of house arrest.

Hayes, along with fellow BitMEX co-founders Benjamin Delo and Samuel Reed and the company’s first non-employee Gregory Dwyer, pleaded guilty to violations of the Bank Secrecy Act (BSA). on Feb. 24, admitting to “deliberately failing to establish, implement and maintain an anti-money laundering (AML) program at BitMEX.”

Charges against BitMEX co-founders and employees for violating the BSA. Source: Justice.gov

Committing to assisting money laundering is a criminal offense and usually carries a maximum penalty of five years in prison. However, both Hayes and Delo pleaded guilty ahead of the March trial date and agreed to pay $10 million in fines each.

Arthur Hayes will serve two years probation for his involvement in the BitMEX money laundering crime
Arthur Hayes will serve two years probation for his involvement in the BitMEX money laundering crime

On April 7, Cointelegraph reported that Hayes had voluntarily turned himself in to US authorities in Hawaii. six months after federal prosecutors filed the first charges, to which their attorneys responded:

“Mr. Hayes has voluntarily appeared in court and looks forward to addressing these unjustified charges.”

According to the indictment, public court filings and testimonies in court Hayes was released on $10 million bail pending further trials in New York. However, prosecutors from the Bureau’s Department of Money Laundering and Transnational Criminal Enterprises found the entrepreneurs guilty of failing to apply anti-money laundering safeguards, including failing to comply with know-your-customer (KYC) obligations.

Despite the threat of imprisonment, confession to the allegations made Hayes was sentenced to house arrest, which means he must spend the first six months of his sentence away from home. In addition, he agreed to pay a $10 million fine.

Breaking the myth regarding the ease of money laundering with cryptocurrencies, A new analysis highlights the potential of blockchain technology and cryptocurrencies to track down financial crimes.

While numerous projects within the cryptocurrency ecosystem have fallen victim to targeted attacks, malicious actors continue to struggle when it comes to withdrawing and moving stolen funds.

Speaking to Cointelegraph, Dmytro Volkov, Chief Technology Officer of cryptocurrency exchange CEX.IO said so The notion that cryptocurrencies are primarily used by criminals is outdated, adds:

“In the case of Bitcoin (BTC), whose blockchain ledger is publicly accessible, a reputable exchange with a competent analysis team can easily monitor and stop hackers and money launderers before the damage is done.

Clarification: The information and/or opinions expressed in this article do not necessarily reflect the views or editorial line of Cointelegraph. The information contained herein should not be construed as financial advice or investment recommendation. All investment and trading movements involve risk and it is the responsibility of each person to conduct their proper research before making any investment decision.

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