HDR Global Trading Limited, the parent company of cryptocurrency exchange BitMEX, issued a statement following the imposition of a new financial penalty tied to its guilty plea for violating the U.S. Bank Secrecy Act (BSA). This latest penalty adds to the legal and regulatory challenges BitMEX has faced in recent years.

In its statement, BitMEX expressed disappointment over the additional penalty but emphasized that the final amount was significantly lower than the figures initially pursued by the US Department of Justice (DOJ). 

"This process has run on for years, during which the DOJ first asked for over USD 200 million of new money to settle a plea deal – once we refused this ridiculous offer, they then sought a penalty of approximately USD 420 million in the sentencing proceedings," the company said.

The penalty comes after a federal judge sentenced HDR Global Trading to two years of unsupervised probation and a $100 million fine for failing to maintain an adequate Anti-Money Laundering (AML) program. This marks the conclusion of a lengthy case that began when BitMEX pleaded guilty in July 2024 to violating the BSA.

Despite the legal challenges, BitMEX highlighted its progress in compliance and operational improvements. The company noted that its compliance standards, including a robust user verification program and comprehensive AML systems, have significantly advanced since the time of the alleged violations.

“Our users, partners, and regulatory stakeholders have long recognised that BitMEX’s compliance standards and activities have changed immeasurably since the period subject to the BSA charge,” the company added.

BitMEX reiterated that the charges related to outdated practices and stressed its commitment to innovation and growth. “We are glad to move past this matter and look forward to continuing to focus on delivering the best products and services to our users without further distraction,” the statement read.‍

Background on the Case

The charges against BitMEX stemmed from its failure to implement meaningful AML and Know Your Customer (KYC) programs while operating in the United States. Prosecutors alleged that from 2015 to 2020, BitMEX flouted US financial regulations, allowing illicit actors to exploit its platform for money laundering and sanctions evasion.

In 2022, BitMEX founders Arthur Hayes, Benjamin Delo, and Samuel Reed, along with its first employee Gregory Dwyer, pleaded guilty to BSA violations. The court found that the exchange operated in the US without the necessary safeguards, such as proper KYC protocols, to prevent illegal activities.

In its latest statement, BitMEX acknowledged the historical significance of these events but maintained that it has since transformed its operations. The company emphasized its focus on leading the cryptocurrency derivatives market with high compliance standards and innovative products.