BitMEX Founders Freed: Trump Issues Controversial Pardons After Conviction

Trump pardons BitMEX founders after money laundering convictions.
Hayes, Delo, Reed pleaded guilty to failing AML requirements.
BitMEX settles with CFTC, faces $100 million fines and penalties.

On March 28 reports confirmed that President Donald Trump issued pardons to BitMEX co-founders Arthur Hayes, Benjamin Delo and Samuel Reed. The trio had previously admitted to criminal offenses related to money laundering and breaking Bank Secrecy Act (BSA) regulations. Hayes, Delo and Reed initially faced serious legal penalties which included fines and possible probation for their role in BitMEX operations.

Reprieve For BitMEX Founders After Trumps Pardon

In 2020 U.S. authorities initiated criminal charges against co-founders of BitMEX which was headquartered in Seychelles. The authorities charged the three co-founders with insufficient anti-money laundering measures such as failure to implement the know your customer (KYC) program. This allowed users to trade anonymously on the platform which created possible spaces for illegal activities.

Hayes, Delo, and Reed admitted guilt for their deliberate failure to comply with Anti-Money Laundering (AML) requirements in 2022. The court awarded the defendants probationary times as part of their sentence. The court sentenced Hayes to a two-year probation, while Delo and Reed received 30 months and 18 months respectively.

U.S. authorities issued financial penalties against the trio, with each required to pay $10 million in fine. Additionally, the Commodity Futures Trading Commission (CFTC) established a $100 million settlement with BitMEX for regulatory violations. The parent company HDR Global Trading Limited received a $100 million fine in January 2025.

Concerns Over Trumps Pardon Spree

Trumps pardon of BitMEX executives has raised concerns especially because the president has previously made numerous controversial decisions. In his tenure as 47th U.S president, Trump issued numerous controversial pardons to individuals involved in major cases. The list includes participants in the January 6 Capitol riot and the Silk Road founder, Ross Ulbricht.

However, Trumps pardons do not eliminate the ongoing legal and regulatory difficulties that continue to hinder BitMEX operations. The platform is recognized for derivatives trading which includes perpetual contracts and futures which made it a major exchange in the crypto market. However, the exchange suffered serious damage to its reputation which prompted leadership changes and substantial financial payments.

Trumps pardon to BitMEX founders stands out because it occurs at a time when U.S. regulators have increased scrutiny on cryptocurrency operations. Although the executive pardons appear to benefit those who helped develop the crypto ecosystem their overall effects remain unclear. The US regulatory environment for cryptocurrency exchanges continues to transform and additional legal actions could follow.

Text source: TronWeekly

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