BitMEX Hit With $100M Fine Over Bank Secrecy Act Violations

Global crypto exchange BitMEX was slapped with a $100 million fine on Wednesday. A Manhattan federal judge confirmed that the exchange violated the Bank Secrecy Act by “willfully failing” to establish US anti-money laundering (AML) rules.

Per the official statement from the U.S. Department of Justice, the company had ignored AML laws to boost its revenue.

This is the latest verdict in the exchange’s long-standing saga over AML violations. BitMEX pleaded guilty to violations in July 2024, and has already paid $110 million in civil and criminal penalties.

“It is critical that all financial institutions, including cryptocurrency exchanges, comply with these rules to protect our country’s economy and national security,” said Attorney Matthew Podolsky.

“Today’s sentence sends a clear message that companies that willfully violate these rules and refuse to implement AML/KYC programs will face consequences.”

In addition to the fine, BitMEX has been sentenced to two years’ probation.

Since 2022, BitMEX has faced significant legal issues in the US. Prosecutors sentensed a 12-month probation for Greg Dwyer, former head of business development, for violating the Bank Secrecy Act (BSA).

The exchange’s founder Arthur Hayes also received a six-month home detention sentence after his guilty plea. Meanwhile, another BitMEX founder, Ben Delo, was sentenced to 30 months of probation.

BitMEX: Disappointed to Learn Imposition of Additional Financial Penalty

Following the penalty, BitMEX wrote that the exchange has continuously implemented significant improvements, including comprehensive KYC and AML systems.

“Our users, partners, and regulatory stakeholders have long recognised that BitMEX’s compliance standards and activities have changed immeasurably since the period subject to the BSA charge,” the firm wrote in a blog post.

The exchange called the BSA charges “old news” and expressed disappointment with the additional financial penalty imposed. However, the amount was substantially less than what the Department of Justice has pursued BitMEX for over 3 years.

“We stand firm by the statement that the BSA charge is old news. We are glad to move past this matter, and look forward to continuing to focus on innovation and delivering the best products and services to our users without further distraction.”