BitMEX
Founded2014
FoundersArthur Hayes, Ben Delo, and Samuel Reed
Headquarters
ProductsCryptocurrency exchange
Websitewww.bitmex.com

BitMEX is a cryptocurrency exchange and derivative trading platform. It is owned and operated by HDR Global Trading Limited, which is registered in the Seychelles.[1][2]

History

BitMEX was founded in 2014 by Arthur Hayes,[3] Ben Delo, and Samuel Reed, with financing from family and friends.[4] Bitmex completed a SAFE[clarification needed] round of investment in July 2015 then shortly after was inducted into SOSV batch 8 china accelerator program where it sold equity in exchange for labour and financing.

In 2016, the exchange introduced perpetual futures, which became its most popular derivative product.[5] [6] In 2018, Delo became the United Kingdom's first billionaire from bitcoin, and its youngest self-made billionaire.[7]

In July 2019, Nouriel Roubini, a critic of cryptocurrencies, suggested that the exchange is involved in illegal activities, allowing traders to take on too much risk and by trading against clients.[8] Two days later, it was reported by Bloomberg that the Commodity Futures Trading Commission (CFTC) was investigating BitMEX as to whether they broke rules by allowing Americans to trade on the platform.[9]

On October 1, 2020, Hayes, Reed, Delo, and Gregory Dwyer were indicted on charges of violating the U.S. Bank Secrecy Act and conspiracy to violate that law, arising from allegations that the four failed to implement anti-money laundering measures.[10][11] The case name is "U.S. v. Hayes et al", case number of 20-cr-00500, in the U.S. District Court for the Southern District of New York.[10]

On April 6, 2021, former BitMEX CEO Arthur Hayes turned himself in to face U.S. charges for violating the Bank Secrecy Act.[12] He was released on $10 million bond pending future court proceedings in New York.[13] [14]

On February 24, 2022, Delo and Hayes pled guilty to violating the Bank Secrecy Act by willfully failing to establish, implement, and maintain an anti-money laundering program at BitMEX. The pair agreed to separately pay a $10 million criminal fine representing pecuniary gain derived from the offense.[15]

Samuel Reed is scheduled for a trial date set for March 28, 2022, by U.S. District Court Judge John George Koeltl in New York. [16] [17] Gregory Dwyer’s trial is scheduled for October 2022.[18]

References

  1. ^ "Company Overview of HDR Global Trading Limited". Bloomberg. Retrieved 17 Oct 2018.
  2. ^ "About BitMEX". BitMEX. Retrieved 16 Nov 2018.
  3. ^ Ciralsky, Adam (February 4, 2021). "The rise and fall of bitcoin billionaire Arthur Hayes". Vanity Fair. Retrieved 6 February 2021.
  4. ^ Robinson, Edward; Vaghela, Viren (January 31, 2018). "Bored With Banking, This Former Citi Trader Went Full Crypto". Bloomberg. Retrieved 17 Oct 2018.
  5. ^ Alexander, C; Choi, J; Park, H; Sohn, S (2020). "BitMEX Bitcoin Derivatives: Price Discovery, Informational Efficiency and Hedging Effectiveness" (PDF). Journal of Futures Markets. 40 (1): 23–43. doi:10.1002/fut.22050. S2CID 216370312. SSRN 3353583.
  6. ^ Alexander, C; Choi, J; Massie, HRA; Sohn, S (2020). "Price Discovery and Microstructure in Ether Spot and Derivative Markets" (PDF). International Review of Financial Analysis. 71: 101506. doi:10.1016/j.irfa.2020.101506. S2CID 219791961. SSRN 3511533.
  7. ^ Urwin, Rosamund (1 Jul 2018). "Where's Wallet? Can you spot Ben Delo, the UK's first bitcoin billionaire?". The Times. Retrieved 17 Oct 2018.
  8. ^ "Nouriel Roubini Ramps Up Campaign Against Crypto Exchange BitMEX". Bloomberg.com. 17 July 2019. Retrieved 19 July 2019.
  9. ^ "U.S. Regulator Probing Crypto Exchange BitMEX Over Client Trades". Bloomberg News. 19 July 2019. Retrieved 19 July 2019.
  10. ^ a b Stempel, Jonathan (2020-10-01). "U.S. charges BitMEX cryptocurrency founders with failing to prevent money laundering". Reuters. New York. Archived from the original on 2020-10-01. Retrieved 2020-10-01.
  11. ^ Popper, Nathaniel (2020-10-01). "Owners of BitMEX, a Leading Bitcoin Exchange, Face Criminal Charges". The New York Times. ISSN 0362-4331. Retrieved 2020-10-06.
  12. ^ "Violation of the Bank Secrecy Act". Department of Justice. October 1, 2020.
  13. ^ "Former BitMEX CEO Arthur Hayes Surrenders to Face Charges". Bloomberg. 2021-04-07. Retrieved 2021-04-07.
  14. ^ Ciralsky, Adam (4 February 2021). "The Rise and Fall of Bitcoin Billionaire Arthur Hayes". Vanity Fair. No. April.
  15. ^ "Founders Of Cryptocurrency Exchange Plead Guilty To Bank Secrecy Act Violations". www.justice.gov. 24 February 2022. Retrieved 27 February 2022.
  16. ^ "Arthur Hayes, BitMEX: Profile and Biography". Bloomberg News.
  17. ^ "Founders and Executives of Off-Shore Cryptocurrency Derivatives Exchange Charged with Violation of the Bank Secrecy Act". October 2020.
  18. ^ Danckert, Sarah (28 December 2021). "Aussie crypto mogul gets break in criminal case". The Sydney Morning Herald. Retrieved 27 February 2022.