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BitMEX Co-founder Gets 30 Month Probation, Tackles Prison Time

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BitMEX Co-founder Gets 30 Month Probation, Tackles Prison Time

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Benjamin Delo, the co-founder of cryptocurrency exchange BitMEX, was sentenced to 30 months of probation for breaching the Bank Secrecy Act (BSA), an anti-money laundering statute.

Following his guilty plea in February to charges of “willfully ignoring to develop, administer, and preserve an Anti-Money Laundering (AML) program” in his capability at BitMEX, the sentence was bied far on June 15 th in a federal court in New York.

Prosecutors recommended that Delo must serve a year in jail or at the minimum be sentenced to 2 years of probation and 6 months of house detention, as previous CEO Arthur Hayes remained in May.

BitMEX’s Benjamin gets away prison time

Delo’s lowered term brings an end to a legal drama that started in October 2020, when co-founders Hayes and Samuel Reed, along with BitMEX’s very first official staff member Gregory (Greg) Dwyer, were all prosecuted with comparable criminal activities.

Delo’s offenses were explained by Judge John Koeltl as “exceptionally substantial,” and he confessed that he understood BitMEX was infringing United States guidelines by stopping working to construct an anti-money laundering (AML) and know-your-customer (KYC) system.

However, Judge Koeltl acknowledged that the exchange later on took actions to fix the issue and ended up being certified.

Judge Koeltl, a British person who resides in Hong Kong, purchased that Delo be allowed to invest his probationary sentence there.

The reality that Delo paid a $10 million fine to settle a court judgment from May in a civil claim brought by the Commodity Futures Trading Commission (CFTC) for breaking parts of the Commodity Exchange Act was likewise considered by Judge Koeltl.

After the sentencing hearing, a representative for Delo’s legal group declared the court declined “the federal government’s opportunistic effort to misrepresent the gravity of the Bank Secrecy Act charge in this circumstances.”

According to the Sydney Morning Herald, previous BitMEX head of organization advancement Greg Dwyer, who now stays in Bermua, remains in conversation with the New York federal court to lengthen a due date for submitting pre-trial paperwork.

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