BitMEX Co-founder Arthur Hayes deserves more than a year in prison
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BitMEX Co-founder Arthur Hayes deserves more than a year in prison

According to U.S. prosecutors, the co-founder of crypto card exchange BitMEX – Arthur Hayes – must remain behind bars for more than 12 months because his company has violated anti-money laundering laws. He is expected to be sentenced to between six months and one year in federal prison after he pleaded guilty to a breach of the Bank Secrecy Act in February.

One year is not enough

The digital exchange and trading platform – BitMEX – came into line in October 2020 when the Commission on Commodity Futures Trading (CTC) accused Arthur Hayes, Benjamin Delos, and Samuel Reed of not establishing and maintaining programs. Prosecutors have argued that the actions of the executive have turned the venue into a “money laundering platform.”

The lawsuits led to the following $100 million financial penalty imposed on BitMEX when the Co-Founders went down.

In February of this year, Hayes pleaded guilty to the charges brought against him, which reduced his prison sentence to six to 12 months. In addition, he agreed to pay $10 million.

However, U.S. prosecutors thought this punishment was not harsh enough. Violations made with intent: Hayes deserves up to one year in federal prison;

“There is no question that this case has been most closely observed in the cryptocurrency industry. A service through the crypto platform can’t be achieved if their operators believe there are no significant repercussions if they don’t comply with the law.”

For the part, Hayes’ lawyers asserted that they do not allow their client to see and travel freely from the inside of the prison. The conference will be a turning point for future violations and will help the U.S. government resolve financial crimes related to crypto platforms.

The Probation Office also believes Hayes should not go to prison after recommending two years of probation.

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Arthur Hayes, Source: Bloomberg

Other Co-founders are not secure

Benjamin Delos and Samuel Reed are liable for BitMEX law enforcement penalties for financial violations. Earlier this month, CfTc ordered that they should pay $million apiece.

Moreover, the judicial sentences for June 15 (Delo) and July 13 (Reed) are unknown, whether they die from time, probation, or monetary sanctions and subsequent imprisonment.

Featured Image courtesy of VanityFair

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