Arthur Hayes, Benjamin Delo and Samuel Reed were charged with money laundering and violating the Bank Secrecy Act and pleaded guilty in 2022.
History of BitMEX's legal troubles
Since taking office on January 20, Trump has signed a number of federal pardons, including more than 1 500 people charged in connection with the January 6, 2021 riots at the U.S. Capitol, as well as Silk Road founder Ross Ulbricht, who has spent more than 11 years in prison. Former FTX CEO Sam Bankman-Fried, who was sentenced to 25 years in prison for misusing client funds, was also reportedly trying to get close to Trump and Republicans to get a pardon.
U.S. authorities presented charges of violating the Bank Secrecy Act to Case, Reed and Hayes in 2020. As a result, Hayes, who was serving as the head of BitMEX, withdrew from his position.
Financial implications for the company
The reasons for the pardon remain unclear, as the three BitMEX co-founders have already been sentenced to a combination of house arrest and probation in 2022. They were also ordered to pay $30 million in fines as part of a civil case with the US Commodity Futures Trading Commission (CFTC).
The exchange's legal proceedings with U.S. authorities included an agreement to pay $100 million in fines to both the CFTC and the U.S. Financial Crimes Enforcement Network in 2021.
The president's decision adds a new chapter to the history of the cryptocurrency industry's relationship with US regulators. The pardon of BitMEX co-founders indicates a softening of the administration's stance towards violations in the cryptocurrency sphere.
