BitMEX Agrees to Pay $100M Settlement With FinCEN, CFTC Over Bank Secrecy Act Violations

BitMEX has agreed to reach a $100 million settlement with two US government agencies, that accuse the cryptocurrency derivatives trading platform of violating US federal law.

According to a statement published by the Financial Crimes Enforcement Network (FinCEN), BitMEX has agreed to pay a $100 million civil penalty, of which $50 million will go to the Commodity Futures Trading Commission (CFTC) and the remainder to the FinCEN, after allegedly violating federal laws between 2014 and 2020.

Over a span of more than six years, BitMEX refrained from implementing adequate anti-money laundering protocols and a customer identification program, as well as failed to report suspicious activity on at least 588 occasions. Moreover, the company also conducted nearly $210 million in transactions with darknet markets and unregistered money services businesses, and sold unlicensed crypto assets to US investors.

The investigation found that BitMEX violated the Bank Secrecy Act, as well as FinCEN’s own regulations. Also as part of the settlement, BitMEX has agreed to refrain from conducting any operations in the US, as well as allow an independent consultant to review its previous transaction data to determine if the firm needs to file additional Suspicious Activity Reports.

Information for this briefing was found via the FinCEN. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.