{"id":10835,"date":"2021-08-11T17:54:07","date_gmt":"2021-08-11T17:54:07","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/bitmex-agrees-to-pay-100-million-to-resolve-charges-with-fincen-and-cftc\/"},"modified":"2021-08-11T17:54:07","modified_gmt":"2021-08-11T17:54:07","slug":"bitmex-agrees-to-pay-100-million-to-resolve-charges-with-fincen-and-cftc","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/bitmex-agrees-to-pay-100-million-to-resolve-charges-with-fincen-and-cftc\/","title":{"rendered":"Bitmex Agrees to Pay $100 Million to Resolve Charges With FinCEN and CFTC"},"content":{"rendered":"

Global cryptocurrency derivatives exchange Bitmex has settled charges with the U.S. Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN). The exchange has agreed to pay as much as $100 million to end investigations by the two agencies.<\/strong><\/p>\n

Bitmex Settles With CFTC and FinCEN<\/h2>\n

Bitmex confirmed Tuesday that \u201cit has reached a resolution with both the United States Commodity Futures Trading Commission (CFTC) and Financial Crimes Enforcement Network (FinCEN) in relation to investigations by both agencies.\u201d The company wrote:<\/p>\n

Bitmex agreed to pay as much as US$100 million to resolve the charges.<\/p>\n

\u201cToday marks an important day in our company\u2019s history, and we are very glad to put this behind us,\u201d commented Bitmex CEO Alexander H\u00f6ptner. \u201cAs crypto matures and enters a new era, we too have evolved into the largest crypto derivatives platform with a fully verified user base.\u201d<\/p>\n

The CFTC separately announced Tuesday that \u201cthe U.S. District Court for the Southern District of New York has entered a consent order against five companies charged with operating the Bitmex cryptocurrency derivatives trading platform.\u201d The companies are HDR Global Trading Ltd., 100x Holding Limited, ABS Global Trading Ltd., Shine Effort Inc Limited, and HDR Global Services (Bermuda) Ltd.<\/p>\n

FinCEN, a bureau of the U.S. Department of the Treasury, also confirmed in an announcement Tuesday that it has assessed a $100 million civil money penalty against Bitmex \u201cfor willful violations of the Bank Secrecy Act\u201d and its regulations.<\/p>\n

\u201cBitmex, which operated as an unregistered futures commission merchant (FCM) and provided money transmission services, willfully failed to comply with its obligations under the BSA,\u201d FinCEN detailed. \u201cFor over 6 years, BitMEX failed to implement and maintain a compliant anti-money laundering program and a customer identification program, and it failed to report certain suspicious activity.\u201d This is FinCEN\u2019s first enforcement action against an FCM.<\/p>\n

The bureau added:<\/p>\n

These willful failures expose financial institutions to an increased risk of conducting transactions with money launderers and terrorist financiers, including noncompliant exchanges in high-risk jurisdictions, ransomware attackers, and darknet marketplaces.<\/p>\n

<\/p>\n

Furthermore, FinCEN detailed that the exchange \u201cconducted at least $209 million worth of transactions with known darknet markets or unregistered money services businesses providing mixing services.\u201d It also \u201cconducted transactions involving high-risk jurisdictions and alleged fraud schemes\u201d and \u201cfailed to file a Suspicious Activity Report (SAR) on at least 588 specific suspicious transactions.\u201d<\/p>\n

Besides the civil penalty, Bitmex has agreed to several independent consultations to determine if it must file additional SARs and \u201cto ensure that appropriate policies, procedures, and controls are in place.\u201d The announcement concludes:<\/p>\n

FinCEN\u2019s $100 million assessment will be satisfied by immediate payments totaling $80 million to FinCEN and the CFTC, with $20 million suspended pending the successful completion of the SAR lookback and independent consultant reviews.<\/p>\n

What do you think about Bitmex paying $100 million to settle charges with the CFTC and FinCEN? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, Bank Secrecy Act, BitMex, bitmex investigations, bitmex settles charges, CFTC, fincen, SEC<\/p>\n","protected":false},"excerpt":{"rendered":"

Global cryptocurrency derivatives exchange Bitmex has settled charges with the U.S. Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN). The exchange has agreed to pay as much as $100 million to end investigations by the two agencies. Bitmex Settles With CFTC and FinCEN Bitmex confirmed Tuesday that \u201cit has reached a…<\/p>\n","protected":false},"author":0,"featured_media":10836,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-10835","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10835"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=10835"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10835\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/10836"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=10835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=10835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=10835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}