Former BitMEX executive Gregory Dwyer has pleaded guilty to bank secrecy violations. according to U.S. Attorney for the Southern District of New York.
Dwyer, who was the head of business development at the cryptocurrency exchange, was one of BitMEX’s first employees and helped the exchange “establish, implement, and maintain an anti-money laundering (“AML”) program.” I admit that I failed to
According to federal prosecutor Damian Williams, Dwyer’s plead guilty means the government has accused four key BitMEX executives, including three of its co-founders, of willfully violating anti-money laundering laws. It means that we were able to make a decision based on Williams said:
“Today’s petition reflects that no employee with administrative powers at a cryptocurrency exchange can knowingly disregard their obligations under the Bank Secrecy Act any less than the founders of such exchanges.”
Authorities previously went after BitMEX in 2020, with FinCEN, DOJ, and CFTC filing tort and civil lawsuits against the company for allowing U.S. residents to trade cryptocurrencies. However, it does not have a license to operate in the country and has insufficient KYC standards.
The charges prompted the company to pay a $100 million fine and co-founders and executives to leave the company.
The three founders who have already pleaded guilty are Samuel Reed, Benjamin DeRo, and Arthur Hayes. The three entered into plea bargains with the government for reduced sentences and fines.
Dwyer seems to have been towing the same line as well. He agreed to pay his $150,000 fine representing the profits earned from the violation.
However, the ruling will be decided by Judge John G. Koeltl, who has also sentenced the three co-founders. The maximum sentence for the crime is five years for him, but many expect Dwyer to get a lighter sentence.
Meanwhile, the government’s insistence on bringing everyone involved in the BitMEX case to justice has sent alarm across the cryptocurrency industry.
SEC Commissioner Hester Pierce — commonly known as Crypto Mom — Said In 2020, the arrest of BitMEX executives is a “pretty loud and clear on the AML/KYC front” for the crypto industry.
