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BREAKING: Bitcoin Crashes While BitMEX Prosecuted By CFTC

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3 months ago

Bitcoin is down more than four percent after the CFTC announced it would sue crypto exchange BitMEX and its parent company HDR Global Trading Limited.

A prison sentence of 5 years

BitMEX CEO Arthur Hayes is accused of illegally offering commodity derivatives to US investors.

BitMEX accepted more than $ 11 billion in Bitcoin deposits but did not register with the regulator. It also did not meet the AML guidelines. The CFTC says a significant portion of the exchange's customers are Americans.

The CFTC will demand imprisonment and fines. Violating the Bank Secrecy Act means that Arthur Hayes could face a maximum sentence of five years in prison.

As noted by a lawyer named Stephen Palley, things are looking particularly bad for BitMEX now that it is accused of money laundering.

CFTC Chairman Heath P. Tarbert says it is imperative to eliminate illegal activity so that the US remains a global leader in the crypto space.

“If the United States is to be a world leader in this field, it is imperative that we eradicate illegal activities such as those alleged in this case. New and innovative financial products can only thrive if there is market integrity. We cannot allow bad actors who break the law to gain an advantage over exchanges that do good by following our rules. “

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