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BitMex co-founders Arthur Hayes and Samuel Reed may surrender

  • At-large BitMex co-founders Arthur Hayes and Ben Delo are considering surrendering to U.S. authorities.
  • They are charged with flouting U.S. Secrecy Act by implementing lax KYC and AML procedures.
  • BitMex distanced itself from Hayes when the case became public.

BitMex co-founder and former CEO Arthur Hayes who is wanted by U.S. authorities, is considering surrendering to Hawaiian authorities on April 6, according to a court filing.

Hayes is in Singapore but has through his legal team, proposed to surrender in Hawaii and appear in a New York court remotely, said Jessica Greenwood, assistant U.S. attorney in Manhattan.

Per the court filings, Hayes would live abroad and appear in court in the U.S. If there is a trial, Hayes would go to New York.

Why is Hayes a wanted man?

Hayes is one of the founders and executives at the derivatives trading platform indicted last year for violating the U.S. Secrecy Act by implementing lax anti-money laundering (AML) and KYC procedures.

The prosecutors claim that the defendants aided the violation of the Secrecy Act by “willfully failing to establish, implement, and maintain an adequate anti-money laundering program” on BitMex.

“In doing so, they allegedly allowed BitMex to operate as a platform in the shadows of the financial markets,” said the authorities.

Hayes, alongside co-founder Ben Delo and Samuel Reed and Gregory Dwyer, the first BitMex employee, was charged in New York with providing services to American clients while disregarding U.S. banking laws.

Reed was arrested in Massachusetts and later released on bail. 

Delo willing to surrender

Following Reed’s arrests, the other defendants have remained at large and managed to keep a low profile.

Hayes resurfaced last month when he wrote a blog post on the Gamestop drama. 

Delo has also shown willingness to surrender and needs help to enter the U.S. as he has taken up residence in a country with travel restrictions. 

“We are working with the FBI and Border Patrol to obtain immigration authorization for him to be permitted to come here,” said Greenwood referring to Delo.

However, Dwyer, who is now based in Bermuda, is not showing any signs of surrender.

BitMEX severs ties with Hayes

BitMex distance itself from Hayes when the case entered the public space. The former CEO and face of the exchange stepped down and the firm appointed a new chief executive.

At its peak, BitMex was the largest cryptocurrency derivatives exchange in the world but has now dropped below the top 5.

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