The cryptocurrency exchange BitMEX has been fined $100 million for willfully disregarding U.S. anti-money laundering laws to drive up profits, the U.S. Department of Justice announced on Wednesday.
BitMEX, also known as HDR Global Trading, was sentenced by U.S. District Judge John Koeltl in Manhattan, following a guilty plea last July.
The penalty includes a two-year probation period. BitMEX, along with its founders who also pleaded guilty in 2022 and received probation, had previously settled related criminal and civil cases by paying approximately $110 million, according to court documents.
BitMEX's legal representatives did not provide immediate responses to requests for comments.
Prosecutors alleged that BitMEX and its founders, Benjamin Delo, Arthur Hayes, and Samuel Reed, intentionally violated the Bank Secrecy Act from 2015 to 2020 by neglecting to implement anti-money laundering and "know your customer" programs, essentially transforming the exchange into a platform for money laundering.
In 2021, BitMEX agreed to pay a fine of up to $100 million to resolve civil allegations by two U.S. regulatory bodies, accusing the exchange of insufficiently vetting customers and accepting their funds for cryptocurrency trading without proper registration.
In the criminal case, prosecutors had initially sought a $417 million fine, contending that BitMEX had not genuinely accepted responsibility for its actions, and the exchange entered a guilty plea only after feeling compelled following the guilty pleas of its founders.
BitMEX argued against any additional fines, pointing to previous settlements and stating that it had evolved into a compliant business, rectifying its previous errors.
The exchange also acknowledged being slow, alongside other cryptocurrency platforms, in adapting to industry changes amid regulatory uncertainties.