Arthur Hayes, co-founder and former CEO of the BitMEX cryptocurrency derivatives exchange, may voluntarily surrender to the US authorities on charges of illegal activities in the US.
This became known during the court hearings in New York, which were held in February. A lawsuit was filed a few months ago against Hayes, BitMEX co-founder Ben Delo and BitMEX CTO Samuel Reed. They are accused of non-compliance with anti-money laundering (AML) measures, violation of the customer identification procedure (KYC) and illegal conduct of business in the United States.
After the US Commodity Futures Trading Commission (CFTC) began to investigate the site’s activities, BitMEX was accused of deliberately withdrawing more than $ 440 million from the exchange. In addition, the lawsuit states that these funds were obtained as a result of illegal actions on the platform BitMEX. BitMEX’s parent company, HDR Global Trading, has denied all allegations.
According to court documents, Hayes currently lives in Singapore and is in negotiations with the US government about a voluntary surrender to the authorities. US Assistant Attorney Jessica Greenwood announced that this will tentatively happen on April 6, 2021 in Hawaii. Hayes will then testify remotely before the trial. The agreement provides that in the future Hayes will be able to live abroad, and, if necessary, attend trials in New York. However, the authorities are still discussing the possibility of leaving Hayes at large, this option is subject to approval in court.
Greenwood also announced that the US authorities have begun to extradite BitMEX business development manager Greg Dwyer. Greenwood hopes that Dwyer will not resist them, but it was not possible with him to agree on a voluntary surrender. The third defendant, Ben Case, announced his readiness to appear at a court hearing in New York. The Attorney’s Office is working with the US Federal Bureau of Investigation (FBI) and the Border Service to ensure that the Case obtain permission to enter the United States from the UK. This issue is expected to be resolved within 30 days.
Lawsuits have been filed against BitMEX on several occasions. So, in May, investors filed an updated class action lawsuit against the exchange, demanding the payment of $ 540 million.
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