BitMEX Fined $100 Million for Anti-Money Laundering Violations

BitMEX, a prominent cryptocurrency exchange, has been fined $100 million by a U.S. District Judge for failing to comply with U.S. anti-money laundering (AML) laws. The fine follows a guilty plea in July 2023 after BitMEX was accused of deliberately ignoring anti-money laundering and “know your customer” (KYC) regulations between 2015 and 2020 to increase revenue. The company was sentenced to two years of probation, and its founders—Benjamin Delo, Arthur Hayes, and Samuel Reed—had previously pled guilty and received probation sentences.

In addition to the $100 million fine, BitMEX had already paid approximately $110 million in related criminal and civil settlements. Prosecutors had initially sought a $417 million fine, arguing that BitMEX failed to show genuine acceptance of responsibility, with the exchange ultimately pleading guilty after its founders’ pleas.

BitMEX contended that no further fine was warranted, pointing to its prior settlements and emphasizing that it has since taken corrective action to become a more compliant business. The company acknowledged it was slow to adapt to regulatory changes during a time of industry uncertainty but has since worked to rectify past issues.