According to the U.S. Attorney for the Southern District of New York, Gregory Dwyer, a former executive at BitMEX, has admitted to breaking the Bank Secrecy Act, as reported by Cryptoslate.
One of BitMEX’s original employees and head of business development, Dwyer has recently acknowledged that the exchange failed to “create, implement, and manage an anti-money laundering (“AML”) policy.”
Damian Williams, the US Attorney, claimed that Dwyer’s guilty plea has made it possible for the government to obtain judgments against four important BitMEX executives, including the company’s three co-founders, for willful violations of anti-money laundering regulations.
“Today’s plea reflects that employees with management authority at cryptocurrency exchanges, no less than the founders of such exchanges, cannot willfully disregard their obligations under the Bank Secrecy Act,” William stated.
Authorities previously pursued BitMEX in 2020, bringing criminal and civil complaints against the company for enabling cryptocurrency trading by Americans. However, it has lax KYC procedures and no operating licence in the nation.
The co-founders and executives left the company’s activities, and the company was forced to pay a $100 million fine as a result of the accusations. Judge John G. Koeltl, who previously sentenced the three co-founders, will decide on the sentence. The maximum punishment for the crime is five years in prison, but many believe Dwyer will receive a lesser punishment, noted Cryptoslate.
The government’s determination to prosecute all those engaged in the BitMEX case serves as a warning to the whole crypto industry.
The arrest of BitMEX executives, according to SEC Commissioner Hester Pierce, a.k.a. “Crypto Mom,” in 2020, is a message that is “pretty loud and obvious on the AML/KYC front” for the cryptocurrency business.
(With insights from Cryptoslate)