US Department of Justice has announced that BitMEX as well as its parent, HDR Global Trading Limited have been fined 100 million dollars by the US Department of Justice for violating Bank Secrecy Law (BSA).
In July 2024, after a protracted legal procedure, the companies pleaded to guilty for their violations. DOJ initially requested penalties of more than $200 million. This figure was later increased to $420,000,000. HDR said that, despite the lower amount, the court still imposed it.
A company statement said:
“We are disappointed by this outcome, though we note the penalty is substantially less than the DOJ’s aggressive demands.”
The report also criticised the long legal proceedings and asked if taxpayers’ resources could have better been utilized.
BSA violation
This case is based on allegations that BitMEX did not follow adequate anti-money-laundering (AML), and Know-Your-Customer (KYC), protocols in the time period examined.
BitMEX, however, highlighted its notable strides made in compliance over the past few years, including the implementation of an “best-in-class user verification program”AML systems that are robust
It said:
“Our compliance standards have transformed dramatically since the time of the BSA charge.”
BitMEX continues to face legal and regulation challenges, as global regulators have increased their scrutiny in recent years.
HDR, despite these challenges has stressed that it is committed to innovation as well as maintaining its leading position on the market for crypto derivatives.
‘Old news’
BitMEX has tried to avoid the legal complications, repeating that the charges were unfounded. “old news.”The platform plans to enhance its product and service offerings while maintaining, what they call industry-leading operational and security stability.
Due to the regulatory structure of the Seychelles-based company, it is not allowed to operate in the US. This company takes strict steps to ensure that unauthorized visitors from countries with restrictions are not allowed access.
BitMEX has continued to position itself as an innovator in the crypto-trading space with its offerings, such as high-leverage permanent contracts. The platform stated its dedication to offering innovative solutions to their global user-base, and described itself as “the safest, most trusted, financially stable”Exchange in the Industry
HDR BitMEX continue to face challenges as they work to repair their reputation and to build upon their new compliance program.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
