Arthur Hayes, a co-founder of BitMEX, needs to spend more time in prison, according to US prosecutors.-featured

Arthur Hayes, a co-founder of BitMEX, needs to spend more time in prison, according to US prosecutors.

The prosecution argued that Arthur Hayes should serve more than 12 months in federal prison for failing to implement an anti-money laundering program at BitMEX.

The co-founder of the cryptocurrency exchange BitMEX, Arthur Hayes, should spend more time in jail than a year, according to US authorities, because his business broke anti-money laundering regulations. Since he admitted to violating the Bank Secrecy Act in February, it is anticipated that the court will sentence him to between six months and a year in federal prison.

One year is insufficient.

In October 2020, the Commodity Futures Trading Commission (CFTC) charged BitMEX’s co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed for failing to create and manage an anti-money laundering program. This made news worldwide. The executives’ conduct, according to the prosecution, transformed the trading floor into a “platform for money-laundering.”

Following legal actions, BitMEX was fined $100 million and the Co-Founders were forced to resign.

Hayes entered a plea of guilty to the charges that were brought against him in February of this year, which may have resulted in a reduced jail term of six to twelve months. He also consented to pay a $10 million fine.

US authorities, however, believe that this sentence is not severe enough. Hayes deserves to spend more than a year in federal jail considering the offenses he committed, they continued: “There is no doubt that this case has been extensively followed in the Bitcoin business. If bitcoin platform operators feel there are no significant consequences for breaking the law, compliance will not be possible.

Hayes’ attorneys, on the other hand, requested that their client be permitted to travel freely overseas and not be able to view the jail cell from the inside. They suggested that this case will serve as a landmark for similar offenses in the future and will aid the US authorities in identifying financial crimes involving cryptocurrency platforms.

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

They Are Not Safe: The Other Co-Founders

For BitMEX’s legal transgressions, Benjamin Delo and Samuel Reed were also hit with pecuniary fines. The CFTC mandated that they each pay $10 million in fines earlier this month.

Additionally, their court sentencing dates have been scheduled for June 15 (for Delo) and July 13 (for Reed), while it is still unclear if they will be given prison sentences, probation, or additional financial penalties.

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