BitMEX Executive Surrenders to U.S. Authorities, Pleads Not Guilty

  • Ben Delo has pleaded not guilty to charges of violating U.S. anti-money laundering laws, and was granted a $20 million bail.
  • Delo, Arthur Hayes and Samuel Reed have all agreed to cooperate with U.S. authorities, while Gregory Dwyer continues to remain at large.
Cuffed hands illustration

Shutterstock

The co-founder of crypto derivatives exchange BitMEX, Ben Delo, has pleaded not guilty to charges of violating U.S. anti-money laundering laws during a remote proceeding, Bloomberg reported on 15 March.

According to the publication, Delo traveled from the U.K. and surrendered to U.S. authorities in New York on Monday to face charges of violating the U.S. Bank Secrecy Act (BSA). He appeared before Magistrate Judge Sarah L. Cave in a remote proceeding, where he pleaded not guilty to all charges, and was subsequently released on a bail bond of $20 million, with the terms of the bail allowing him to return to the U.K.. A representative of Delo, Rachel Miller, said in a statement:

“The charges against Ben are unfounded and represent unwarranted overreach by the U.S. authorities. Ben intends to defend himself against the charges and clear his name in court.”

Delo — alongside his fellow BitMEX executives Arthur Hayes, Samuel Reed, and their first employee Greg Dwyer — was accused by the U.S. Commodity Futures Trading Commission (CFTC) and Department of Justice (DoJ) of operating an unregistered trading platform back in October. The executives were also accused of violating U.S. anti-money laundering laws, and providing unlicensed services to U.S. citizens.

All of BitMEX’s co-founders have now agreed to cooperate with U.S. authorities regarding this case. Reed, the ex-CTO of the firm, was arrested back in October, and released from custody after he agreed to comply with the court, and pay a $5 million bail bond. The former CEO, Hayes, is currently in Singapore, but has discussed surrendering to U.S. authorities in Hawaii in early April. However, BitMEX’s first employee and head of business development, Dwyer, has declined to surrender, though U.S. authorities have already initiated extradition proceedings to bring him back from the Bermudas. A spokesperson for Dwyer said in a statement shared with The Chain Bulleting:

“Mr. Dwyer has every intention to defend himself in court against these meritless charges. To that end, his attorneys are working with the government to arrange for his appearance in court.”

Update: Added a statement from a representative of Greg Dwyer.

Discussion
Related Coverage
Musk Hints at Crypto Payments on Twitter
  • During a Twitter virtual all hands on deck meeting, billionaire Elon Musk said “it would make sense to integrate payments into Twitter”, including crypto.
  • The CEO of Tesla and SpaceX also noted that his goal for Twitter was to “maximize the usefulness of the service”, and that enabling convenient payments was one way to do it.
June 17, 2022, 11:53 AM
Tesla CEO Elon Musk in California City

Tesla CEO Elon Musk in California City, California, USA on 14 December 2020. Shutterstock

CFTC Sues Gemini Over 2017 BTC Futures Contract Evaluation
  • One of the main points of the complaint is that Gemini provided misleading information on how susceptible to manipulation the BTC futures contract could be.
  • The CFTC seeks disgorgement of ill-gotten gains, civil monetary penalties, injunctions relating to registration and trading, and an injunction against further violations of the Commodity Exchange Act.
BitMEX Launches Crypto Spot Trading Platform
  • Initially, the BitMEX Spot Exchange will support seven crypto assets, including BTC, ETH, LINK, UNI, MATIC, AXS, APE, all traded against the USDT stablecoin.
  • The celebrate the launch of the crypto spot exchange, BitMEX has launched a giveaway with over $1 million in crypto prizes.