Former U.S. President Donald Trump announced the pardoning of three BitMEX cryptocurrency exchange founders, as well as ex-CEO and founder of Nikola.
Pardoning of BitMEX Cofounders
Benjamin Delo, Samuel Reed, and former CEO Arthur Hayes had pled guilty to federal crimes related to money laundering and regulatory violations. They were accused of operating the platform as a 'money laundering exchange' and misleading authorities about their U.S. activities.
Implications for BitMEX
In 2022, Hayes and Delo admitted to failing to establish an AML program and were sentenced to probation—Delo for 30 months and Hayes to six months of home confinement followed by two years of probation. Reed, the former chief technology officer of the company, was sentenced to 18 months of probation and fined $10 million. BitMEX was also ordered to pay a $100 million fine for its violations.
Pardoning of Former Nikola CEO
In addition to the BitMEX founders, Trump pardoned Trevor Milton, the ex-CEO and founder of electric vehicle maker Nikola. Milton had been convicted of securities fraud after defrauding investors about Nikola's technological capabilities, causing significant financial losses. He had been sentenced to four years in prison but remained free on appeal.
The pardoning of these influential figures is likely to prompt discussions and reactions in the financial and legal communities. Further implications of these decisions will be closely monitored.
