Former BitMEX CEO Arthur Hayes Avoids Prison Time, Sentenced to 2 Years Probation

The co-founder and former CEO of the crypto derivatives platform BitMEX was sentenced to two years of probation, with the primary six months to be spent in dwelling confinement.

• In late 2020, the Commodity Futures Trading Commission (CFTC) accused the company’s co-founders – Arthur Hayes, Benjamin Delo, and Samuel Reed – of working a digital asset buying and selling venue with out implementing sufficient anti-money laundering guidelines.
• BitMEX had to pay a penalty of $100 million whereas the three co-founders stepped down. More lately, Hayes, by his legal professionals, filed a request for leniency in his sentencing, which was scheduled for May 20.
• Cited by Bloomberg, the sentencing grew to become official yesterday, through which the US District Judge John Koeltl granted Hayes’ want, and he won’t head to jail. Instead, he received a two-year probation sentence and can have to spend the primary six months in dwelling confinement.
• This got here even after a number of US prosecutors argued that Hayes’ punishment ought to be extra extreme and will ship a sign to the complete crypto trade. During yesterday’s listening to, Assistant US Attorney Samuel Raymond informed the federal choose that it is a “very serious offense” and added:

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• The Assistant Attorney added that such a lightweight sentence will “send a message to him that the cost of doing business is merely a fine, and he could continue to violate the law for huge amounts and pay any fine. This case is being closely watched by cryptocurrency exchanges and other companies around the world.”
• On the opposite hand, Hayes took full accountability for his actions and promised that he was “ready to turn the page and start again.”