Company:BitMEX

From HandWiki
BitMEX
Founded2014
FoundersArthur Hayes, Ben Delo, and Samuel Reed
Headquarters
Seychelles
ProductsCryptocurrency exchange
Website{{{1}}}

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]

BitMEX offers a variety of cryptocurrency-based financial products, including perpetual contracts, futures contracts, and options contracts. These products allow traders to bet on the price movements of cryptocurrencies like Bitcoin, Ethereum, and others, without actually owning the underlying assets.

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 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.[5]


In 2016, the exchange introduced perpetual futures, which became its most popular derivative product.[6] [7] In 2018, Delo became the United Kingdom's first billionaire from bitcoin, and its youngest self-made billionaire.[8]

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.[9] 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.[10]

On 1 October 2020, Hayes, Reed, Delo, and Gregory Dwyer were indicted on charges of violating the US Bank Secrecy Act and conspiracy to violate that law, arising from allegations that the four failed to implement anti-money laundering measures.[11][12] The case name is "U.S. v. Hayes et al", case number of 20-cr-00500, in the US District Court for the Southern District of New York.[11]

On 6 April 2021, former BitMEX CEO Arthur Hayes turned himself in to face US charges for violating the Bank Secrecy Act.[13] He was released on $10 million bond pending future court proceedings in New York.[14][15]

On 24 February 2022, Delo and Hayes pled guilty to violating the Bank Secrecy Act by wilfully 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 offence.[16]

On 9 March 2022, Reed pleaded guilty to violating the Bank Secrecy Act and agreed to pay a $10 million criminal fine. Reed was sentenced by US District Court Judge John George Koeltl in New York to probation along with the other co-founders.[17][18] Gregory Dwyer's trial was initially scheduled for October 2022, and subsequently pled guilty and received a 12-month probation and $150,000 fine as punishment.[19][20]

On 20 May 2022, Hayes was sentenced to two years' probation, with home confinement for six months.[21]

On 15 June 2022, Delo was sentenced to 30 months' probation and as a UK citizen returned to Hong Kong subsequently to serve his probation.[22]

In July 2024, BitMex pleaded guilty to violating the Bank Secrecy Act due to failing to maintain an adequate anti-money laundering program.[23] On 15 January 2025, the company was fined $100 million.[24]

In March 2025, President Trump issued four federal pardons to individuals associated with BitMEX, and one to the exchange itself. This is the first time a pardon has been granted to a corporation rather than a natural person.[25]

References

  1. ↑ "Company Overview of HDR Global Trading Limited". Bloomberg L.P.. https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=309314412. 
  2. ↑ "About BitMEX". https://www.bitmex.com/app/aboutUs. 
  3. ↑ Ciralsky, Adam (4 February 2021). "The rise and fall of bitcoin billionaire Arthur Hayes". Vanity Fair. https://www.vanityfair.com/news/2021/02/the-rise-and-fall-of-bitcoin-billionaire-arthur-hayes. 
  4. ↑ Robinson, Edward; Vaghela, Viren (31 January 2018). "Bored With Banking, This Former Citi Trader Went Full Crypto". Bloomberg L.P.. https://www.bloomberg.com/news/features/2018-02-01/bored-with-banking-this-former-citi-trader-went-full-crypto. 
  5. ↑ "BitMEX Hit with $540M Lawsuit from Purported Early Investors". 2019-11-21. https://www.financemagnates.com/cryptocurrency/exchange/bitmex-hit-with-540m-lawsuit-from-purported-early-investors/. "“Mr. Amato executed the SAFE and then, on June 26, 2015, wired Defendants $30,000,” the legal document reads, referencing BitMEX’s SAFE round of investment." 
  6. ↑ Alexander, C; Choi, J; Park, H; Sohn, S (2020). "BitMEX Bitcoin Derivatives: Price Discovery, Informational Efficiency and Hedging Effectiveness". Journal of Futures Markets 40 (1): 23–43. doi:10.1002/fut.22050. http://sro.sussex.ac.uk/id/eprint/85380/1/BitMEX_PriceDiscovery_Body2.pdf. Retrieved 2021-09-27. 
  7. ↑ Alexander, C; Choi, J; Massie, HRA; Sohn, S (2020). "Price Discovery and Microstructure in Ether Spot and Derivative Markets". International Review of Financial Analysis 71. doi:10.1016/j.irfa.2020.101506. http://sro.sussex.ac.uk/id/eprint/90585/1/Ether_Microstructure_AcceptedVersion.pdf. Retrieved 2022-02-13. 
  8. ↑ Urwin, Rosamund (1 July 2018). "Where's Wallet? Can you spot Ben Delo, the UK's first bitcoin billionaire?". https://www.thetimes.com/business-money/technology/article/wheres-wallet-can-you-spot-ben-delo-the-uks-first-bitcoin-billionaire-llp2fk2rt. 
  9. ↑ "Nouriel Roubini Ramps Up Campaign Against Crypto Exchange BitMEX". Bloomberg.com. 17 July 2019. https://www.bloomberg.com/news/articles/2019-07-17/nouriel-roubini-ramps-up-campaign-against-crypto-exchange-bitmex. 
  10. ↑ "U.S. Regulator Probing Crypto Exchange BitMEX Over Client Trades". 19 July 2019. https://www.bloomberg.com/news/articles/2019-07-19/u-s-regulator-probing-crypto-exchange-bitmex-over-client-trades. 
  11. ↑ 11.0 11.1 Stempel, Jonathan (1 October 2020). "U.S. charges BitMEX cryptocurrency founders with failing to prevent money laundering" (in en). Reuters (New York). https://www.reuters.com/article/us-usa-crime-bitmex-idUSKBN26M6SE. 
  12. ↑ Popper, Nathaniel (1 October 2020). "Owners of BitMEX, a Leading Bitcoin Exchange, Face Criminal Charges" (in en-US). The New York Times. ISSN 0362-4331. https://www.nytimes.com/2020/10/01/technology/bitmex-bitcoin-criminal-charges.html. 
  13. ↑ "Violation of the Bank Secrecy Act". Department of Justice. 1 October 2020. https://www.justice.gov/usao-sdny/press-release/file/1323316/download. 
  14. ↑ "Former BitMEX CEO Arthur Hayes Surrenders to Face Charges". Bloomberg L.P.. 7 April 2021. https://www.bloomberg.com/news/articles/2021-04-06/former-bitmex-ceo-arthur-hayes-surrenders-to-face-u-s-charges. 
  15. ↑ Ciralsky, Adam (4 February 2021). "The Rise and Fall of Bitcoin Billionaire Arthur Hayes". Vanity Fair (April). https://www.vanityfair.com/news/2021/02/the-rise-and-fall-of-bitcoin-billionaire-arthur-hayes. Retrieved 6 February 2021. 
  16. ↑ "Founders Of Cryptocurrency Exchange Plead Guilty To Bank Secrecy Act Violations" (in en). 24 February 2022. https://www.justice.gov/usao-sdny/pr/founders-cryptocurrency-exchange-plead-guilty-bank-secrecy-act-violations. 
  17. ↑ Stempel, Jonathan (8 August 2022). "New guilty plea in BitMEX crypto exchange laundering case" (in en). https://www.reuters.com/technology/new-guilty-plea-bitmex-crypto-exchange-laundering-case-2022-08-08/. 
  18. ↑ "Third Founder Of Cryptocurrency Exchange Pleads Guilty To Bank Secrecy Act Violations" (in en). 9 March 2022. https://www.justice.gov/usao-sdny/pr/third-founder-cryptocurrency-exchange-pleads-guilty-bank-secrecy-act-violations. 
  19. ↑ Sun, Menqi (28 December 2021). "Top Employee of Crypto Exchange BitMEX Sentenced Over U.S. Charge" (in en). https://www.wsj.com/articles/top-employee-of-crypto-exchange-bitmex-sentenced-over-u-s-charge-11668716287. 
  20. ↑ Danckert, Sarah (28 December 2021). "Aussie crypto mogul gets break in criminal case" (in en). https://www.smh.com.au/business/markets/aussie-crypto-mogul-gets-break-in-criminal-case-20211228-p59kga.html. 
  21. ↑ Dolmetsch, Chris (20 May 2022). "BitMEX Co-Founder Arthur Hayes Sentenced to Two Years' Probation" (in en). https://www.bloomberg.com/news/articles/2022-05-20/bitmex-co-founder-arthur-hayes-sentenced-to-two-years-probation. 
  22. ↑ Vanderford, Richard (16 June 2022). "BitMEX Co-Founder Sentenced to Probation on U.S. Compliance Charge". https://www.wsj.com/articles/bitmex-co-founder-sentenced-to-probation-on-u-s-compliance-charge-11655339914. 
  23. ↑ Vanderford, Richard (10 July 2024). "BitMEX Pleads Guilty to U.S. Charge Over Anti-Money-Laundering Failure". The Wall Street Journal. https://www.wsj.com/articles/bitmex-pleads-guilty-to-u-s-charge-over-anti-money-laundering-failure-f2e80811. 
  24. ↑ "BitMEX fined $100 million by US judge for anti-money laundering violations" (in en-US). Reuters. https://www.reuters.com/technology/us-says-bitmex-fined-100-million-violating-bank-secrecy-act-2025-01-15/. 
  25. ↑ "Trump makes history by pardoning a corporation". The Hill. 1 April 2025. https://thehill.com/opinion/criminal-justice/5224229-trump-makes-history-by-pardoning-a-corporation/. 
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