BitMEX Settles With CFTC and FinCEN for $100,000
Key Takeaways
The major cryptocurrency derivatives exchange BitMEX has reached a settlement with FinCEN and the CFTC.
The company will pay up to $100,000 in penalties to the regulators.
BitMEX faced charges last year for its failure to create a strong KYC/AML program and report suspicious activity.
Share this article
BitMEX has reached a settlement with two U.S. regulators, according to an announcement on the derivative exchange’s website.
BitMEX Will Pay $100 Million
BitMEX has reached a resolution with two regulators: the United States Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN).
The company will pay up to $100 million as a penalty to resolve charges filed against it last October. $80 million will be paid to FINCEN and the CFTC, while $20 million may be suspended and offset after the company engages in reviews ordered by the regulators.
BitMEX CEO Alexander Höptner wrote that the company aims to expand its services and diversify its hiring practices. He added that putting these legal charges in the past “will only accelerate our evolution and [put] us firmly on the right path.”
Höptner and BitMEX outlined the various KYC and user verification practices that the exchange has engaged in since 2019, which can be seen in the company’s original blog post.
CFTC and FinCEN Reveal Details
A press release from the CFTC indicates that BitMEX was charged with illegally operating a cryptocurrency trading platform and violating anti-money laundering (AML) regulations.
Meanwhile, FinCEN says that the cryptocurrency exchange willfully violated the Bank Secrecy Act by failing to create a strong AML program. For more than six years, it failed to maintain a customer identification platform and report suspicious activity.
The regulators will also ensure that BitMEX is not serving customers based in the U.S., a rule that took effect circa 2018.
The news comes just one day after the U.S. Securities and Exchange Commission announced a settlement with another major exchange, Poloniex. Those parties reached a $10 million settlement.
Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
CFTC Examines Whether Binance Illegally Brokered Trades for US Users
The Commodity Futures Trading Commission (CFTC) in the U.S. is investigating Binance to determine whether the exchange illegally facilitated trading for U.S. residents. Binance Under Investigation Binance isn’t registered with…
Coinbase Ends Margin Trading in Response to CFTC Regulations
Coinbase Pro has decided to discontinue its margin trading services, according to a post on the company’s blog. Margin Trading Ends Wednesday According to the announcement, customers will not be…
Poloniex Reaches $10M Settlement With SEC Over Unregistered Status
The Securities and Exchange Commission has charged crypto exchange Poloniex for operating an “unregistered online digital assets exchange” and facilitating the trading of digital assets it deems securities on its…
What is Impermanent Loss and How can you avoid it?
DeFi has given traders and investors new opportunities to earn on their crypto holdings. One of these ways is by providing liquidity to the Automated Market Makers (AMMs). Instead of holding assets,…
