November 29, 2022

Damian Williams, america Lawyer for the Southern District of New York, introduced that GREGORY DWYER, a high-ranking worker of purportedly “off-shore” cryptocurrency derivatives alternate the Bitcoin Mercantile Alternate or “BitMEX,” pled responsible at this time to violating the Financial institution Secrecy Act (the “BSA”) by willfully failing to ascertain, implement, and keep an anti-money laundering (“AML”) program at BitMEX, and aiding and abetting the identical.  DWYER pled responsible at this time earlier than U.S. District Decide John G. Koeltl.

U.S. Lawyer Damian Williams stated:  “With this plea, this Workplace has now obtained felony convictions towards all three founders, in addition to a high-ranking worker at BitMEX, for willful violations of anti-money laundering legal guidelines.  As we speak’s plea displays that workers with administration authority at cryptocurrency exchanges, a minimum of the founders of such exchanges, can not willfully disregard their obligations below the Financial institution Secrecy Act.”

In response to the Indictment, public court docket filings, and statements made in court docket:

DWYER was one of many first workers of BitMEX, and served as its Head of Enterprise Growth.  BitMEX is a web-based cryptocurrency derivatives alternate that, in the course of the related time interval, had U.S.-based operations and served hundreds of U.S. clients.  From a minimum of September 2015, and persevering with a minimum of by means of the time of the Indictment in September 2020, DWYER, working with BitMEX’s founders Arthur Hayes, Benjamin Delo, and Samuel Reed, willfully precipitated BitMEX to fail to ascertain and keep an AML program, together with a program for verifying the establish of BitMEX’s clients (or a “know your buyer” or “KYC” program).  Because of its willful failure to implement AML and KYC packages, BitMEX was in impact a cash laundering platform. 

DWYER aided and abetted BitMEX’s failure to institute AML or KYC packages regardless of carefully following U.S. regulatory developments that made clear the authorized obligation to take action if BitMEX operated in america, which it did.  DWYER knew that BitMEX’s purported withdrawal from the U.S. market after in or about September 2015 was a sham, and that purported “controls” BitMEX put in place to forestall U.S. buying and selling have been an ineffective facade that didn’t, in actual fact, forestall customers from accessing or buying and selling on BitMEX from america.  Amongst his different duties at BitMEX, DWYER collected and circulated knowledge evidencing that BitMEX customers included merchants, and that the corporate earned income, from america.

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DWYER, 39, of Australia and Bermuda, pled responsible to 1 depend of violating the Financial institution Secrecy Act, which carries a most penalty of 5 years in jail.  Beneath the phrases of his plea settlement, DWYER agreed to individually pay a $150,000 felony tremendous representing pecuniary achieve derived from the offense.

The utmost potential sentence on this case is prescribed by Congress and is offered right here for informational functions solely, as any sentencing of the defendant will likely be decided by the decide.

HAYES, DELO, and REED, beforehand pled responsible to the identical depend, and have been sentenced by Decide Koeltl.

Mr. Williams praised the excellent investigative work of the FBI’s New York Cash Laundering Investigation Squad, and thanked the attorneys and investigators on the Commodity Futures Buying and selling Fee whose experience and diligence have been integral to the event of this investigation.

The prosecution is being dealt with by the Workplace’s Cash Laundering and Transnational Felony Enterprises Unit.  Assistant U.S. Attorneys Jessica Greenwood, Samuel Raymond, and Thane Rehn are answerable for the prosecution. 

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