DodoFinance Breaking News Made For You!
Samuel Reed pleads guilty in a lawsuit against the US state. BitMEX co-founder pleads guilty in violation of US bank secrecy law.
BitMEX and lawsuits
In October 2020, the three founders of BitMEX and their first employee Greg Dwyer were indicted by the United States Attorney General’s Office. The group is suspected of illegally offering derivatives to US customers, facilitating money laundering through the crypto exchange and accepting Iranian customers. The latter was not authorized, because of the sanctions against the regime.
The BitMEX Company recently paid $100 million in a settlement† But the three co-founders have since made different confessions.
“Samuel Reed now joins his co-founders, Arthur Hayes and Benjamin Delo, in admitting that they instigated BitMEX to commit criminal violations of anti-money laundering laws that apply to financial institutions operating in the United States” , said attorney Damian Williams. in a report.
The latest “victim” in this case is Samuel Reed. He admits to having violated the American law on bank secrecy.
The Currency and Foreign Transactions Reporting Act of 1970 (aka Bank Secrecy Act) requires US financial institutions to assist US government agencies in detecting and preventing money laundering. So it doesn’t have much to do secret (or secrecy) as Reed admits he failed to track down the crime money.
A company that provides services to Americans (or ignores sanctions lists) must comply. US authorities also get involved if you are officially located in another country, like BitMEX was in this case.
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