Former U.S. President Donald Trump granted pardons to BitMEX exchange founders Arthur Hayes, Benjamin Delo, and Samuel Reed following their admission of guilt in money laundering and regulatory violations.
Charges and Convictions
The three BitMEX co-founders had earlier pleaded guilty to federal charges related to money laundering and regulatory violations, according to a CNBC report. Prosecutors labeled the platform as a 'money laundering tool.' Samuel Reed admitted to violating the Bank Secrecy Act in 2022 and agreed to pay a $10 million fine. Despite BitMEX's claims of withdrawing from the U.S. market, authorities considered the move a sham.
BitMEX's Financial Penalties
In January, BitMEX was ordered to pay a $100 million fine for violating U.S. banking laws. A federal judge ordered HDR Global Trading Limited, BitMEX's parent company, to pay this penalty along with serving a two-year probation period. Prior to this, BitMEX enlisted Broadhaven Capital Partners to seek a buyer amid increased mergers and acquisitions in the crypto derivatives sector.
Pardon Context
Trump issued the pardons on Thursday, as reported by CNBC. On the same day, it was announced that Trevor Milton, former CEO of Nikola, also received a pardon for his conviction on securities fraud charges. Milton had been sentenced to four years in prison, but remained free pending appeal.
These developments lead to interest in how future regulatory policies in the U.S. towards cryptocurrency platforms might evolve, given the scale of violations and related penalties.
