The week has not started so well for 75 BitMEX employees laid off. The number makes up a quarter of the exchange’s staff globally, as it currently employs about 300 people.
BitMEX’s Legal Hurdles
The layoff news is coming hardly a week after BitMEX failed to acquire a German bank, Bankhaus von der Heydt. In October 2020, the exchange was hit by legal hurdles under the accusation of illegally operating a crypto derivatives platform and violating the U.S. anti-money laundering rules.
In August 2021, BitMEX had to settle with the U.S. CFTC and FinCEN an amount of $100 million. The woes of crypto exchange BitMEX followed it into 2022. In February this year, BitMEX co-founders Arthur Hayes and Benjamin Delo pleaded guilty to violating the U.S. Bank Secrecy Act in federal court. The two were accused of failing to put up and maintain appropriate compliance programs for KYC requirements and prevent money laundering.
Another executive and co-founder of BitMEX, Samuel Reed, was also found guilty of violating U.S. anti-money laundering (AML) rules by the Department of Justice. To settle their charges, the three had to pay $10 million each. These legal battles must have put a massive dent in the exchange’s capital.
BitMEX Assures Customers Normal Operations will Maintain
Crypto exchange BitMEX assured users that its operations would maintain the norm despite the layoff announcement. A spokesperson for the exchange stated that it was making changes to its workforce to streamline for the next phase of business. The spokesperson continued that all who will be impacted will receive the support they require.
BitMEX’s lay off of a quarter of its employees seems a final resolution for the exchange. Reportedly, each of the BitMEX employees has been instrumental in the journey from the exchange’s roots as a start-up to the peak of one of the top crypto exchanges.
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