US Prosecutors Say Arthur Hayes Deserves More Sentence in Prison

BitMEX Co-Founder Arthur Hayes

May 14, 2022

Reading Time: 2 minutes

According to US authorities, Arthur Hayes, the Co-Founder of the cryptocurrency exchange BitMEX, should serve more than a year in prison for violating anti-money laundering laws.

Since pleading guilty to violating the Bank Secrecy Act in February, the court is anticipated to sentence him to six months and one year in federal prison.

One Year Is Not Enough

The Commodity Futures Trading Commission (CFTC) charged BitMEX Co-Founders Arthur Hayes, Benjamin Delo, and Samuel Reed with failing to build and maintain an anti-money laundering program in October 2020. Prosecutors said that the executives’ activities converted the trading platform into a money-laundering hub.

Following the filing of the cases, BitMEX was fined $100 million, and the Co-Founders were forced to resign.

Hayes pled guilty to the allegations against him in February of this year, potentially reducing his jail term to six to 12 months. He also agreed to pay a punishment of $10 million.

However, US authorities believe that this sentence is insufficiently severe.

“With the infractions he committed, Hayes deserves to be in federal jail for nearly a year,” they said, adding, “There is no doubt that this case has been keenly observed in the Bitcoin sector.” Compliance by cryptocurrency platforms will be impossible to achieve if their operators feel there are no significant consequences for breaking the law.”

Hayes’ attorneys, for their part, insisted that their client not be allowed to view the inside of the jail cell and that he be allowed to travel freely overseas. They said that this case would serve as a tipping point for future violations and aid the US authorities in investigating financial crimes using crypto platforms.

According to the Probation Office, Hayes should not go to prison, which recommends two years of probation.

None of The Other Co-Founders Are Safe

BitMEX’s legislation infractions also resulted in financial fines for Benjamin Delo and Samuel Reed. The CFTC ordered them to pay $10 million in penalties earlier this month.

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