Co-founders of BitMEX, including Arthur Hayes, to Secure Presidential Clemency
Cryptocurrency Exchange Co-founders Pardoned by Trump After Bank Secrecy Act Violations
In a surprising turn of events, former President Donald Trump has pardoned the three co-founders of the cryptocurrency exchange BitMEX - Arthur Hayes, Benjamin Delo, and Samuel Reed. These individuals had earlier pleaded guilty to violating the Bank Secrecy Act by not implementing proper Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols.
As per CNBC, the pardons were issued on Thursday, effectively erasing the legal troubles of the three executives. Prosecutors had accused them of operating BitMEX as a platform that lacked sufficient identity verification measures, a crucial requirement for preventing financial crimes.
From 2014 to 2020, BitMEX enabled users to trade derivatives with just an email address, bypassing the need for identity verification. This lack of compliance made the platform vulnerable to money laundering and other illicit activities. In 2020, U.S. Attorney Damien Williams stated that BitMEX had become a tool for large-scale money laundering and sanctions evasion, posing a risk to the integrity of the financial system.
Despite the legal battle, the three executives had already avoided prison sentences, receiving probation instead. However, they were required to pay substantial fines amounting to tens of millions of dollars. In a separate case last year, BitMEX admitted to violating the Bank Secrecy Act, further highlighting the regulatory scrutiny faced by the platform.
Trump's decision to pardon the co-founders has added another layer of controversy to the discussion surrounding financial regulation and presidential pardon powers. Critics argue that the pardons weaken efforts to hold executives accountable for systemic compliance failures.
BackgroundLaunched in 2014, BitMEX allowed users to trade anonymously, avoiding Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements. U.S. authorities charged the platform for facilitating money laundering and sanctions evasion in 2020. By 2022, the co-founders pleaded guilty and received probation and fines. BitMEX faced a total of $230 million in penalties, including a $100 million fine in 2025 and $130 million in earlier civil penalties.
Implications- Corporate Pardon Precedent: Trump’s pardon of BitMEX marks the first time a U.S. president has pardoned a corporation, which could potentially incentivize corporate lobbying to evade accountability.- Crypto Regulatory Signal: The pardons coincide with a Justice Department memo realigning crypto enforcement priorities, raising concerns about weakened deterrence for financial crimes in the cryptocurrency sector.- Criticism of Enforcement: Co-founder Delo views the charges as politically motivated and rooted in outdated laws. However, critics argue the pardons undermine efforts to hold executives accountable for systemic compliance failures.
This action reflects broader debates over corporate liability and regulatory oversight in rapidly evolving financial technologies.
- In a report by CNBC, the pardons issued by former President Donald Trump on Thursday reportedly include the co-founders of the cryptocurrency exchange BitMEX.
- The three co-founders, Arthur Hayes, Benjamin Delo, and Samuel Reed, had pleaded guilty to violating the Bank Secrecy Act by not implementing proper Anti-Money Laundering and Know Your Customer protocols.
- Despite facing substantial fines amounting to tens of millions of dollars, the pardons effectively erase the legal troubles of these individuals involving their business in technology and finance.
- Critics argue that Trump's decision to pardon the co-founders weakens efforts to hold executives accountable for systemic compliance failures, particularly in the rapidly evolving field of cryptocurrency.
