BitMEX Ordered to Pay $100 Million to Settle with CFTC and FinCEN

BitMEX, one of the major cryptocurrency derivatives exchanges, announced that it has agreed to pay $100 million to settle with both the United States Commodity Futures Trading Commission (CFTC) and Financial Crimes Enforcement Network (FinCEN).

Let’s recall that, in October 2020, the CFTC charged BitMEX entities​ and their three individual founders with unlawfully accepting orders and funds from U.S. customers to trade cryptocurrencies and failing to implement KYC and AML procedures.

The BitMEX entities are HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited, and HDR Global Services (Bermuda) Limited.

The latest order requires the BitMEX entities to pay a $100 million civil monetary penalty, and provides that up to $50 million of the penalty may be offset by payments the BitMEX entities make or are credited pursuant to a Consent to Assessment of Civil Monetary Penalty entered by the Financial Crimes Enforcement Network (FinCEN).

“We take our responsibilities extremely seriously, and will continue to actively engage with regulators around the world to ensure that we play a positive role in helping to shape the future of this extraordinary asset class,” said Alexander Höptner, Chief Executive Officer of BitMEX.

“This action highlights that the registration requirements and core consumer protections Congress established for our traditional derivatives market apply equally in the growing digital asset market,” Acting Director of Enforcement Vincent McGonagle added.”Cryptocurrency trading platforms conducting business in the U.S. must obtain the appropriate registration, and must implement robust Know-Your-Customer and Anti-Money Laundering procedures.”