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Arthur Hayes, the former CEO of BitMEX, was sentenced to two years of probation instead of prison time

The former CEO and co-founder of the crypto derivatives platform BitMEX was sentenced to two years of probation, the first six months of which will be served at home.

The company’s co-founders – Arthur Hayes, Benjamin Delo, and Samuel Reed – were charged by the Commodity Futures Trading Commission (CFTC) in late 2020 with operating a digital asset trading venue without implementing necessary anti-money laundering rules.

BitMEX was fined $100 million and the three co-founders were forced to resign. Hayes’ lawyers just filed a request for mercy in his next sentencing, which is set for May 20.

According to Bloomberg, the sentencing was finalized Friday, with US District Judge John Koeltl granting Hayes’ plea to avoid prison.

Instead, he received a two-year probationary sentence, with the first six months spent on home confinement.

This was despite the fact that numerous US prosecutors argued that Hayes’ sentencing should be harsher to send a message to the whole crypto business.

Assistant US Attorney Samuel Raymond informed the federal judge during yesterday’s hearing that this is a “very serious offense” and added:

“There were real consequences. When individuals like Mr. Hayes operate platforms without”
” anti-money-laundering programs or know-your-customer programs,”
” they become a magnet for people to launder money.”

According to the Assistant Attorney, such a small term will “send a message to him that the cost of doing business is only a fine, and he can continue to break the law for large sums and pay whatever punishment.”

Cryptocurrency exchanges and other companies around the world are keeping a careful eye on this issue.”

Hayes, on the other hand, accepted full responsibility for his conduct and said he was “ready to turn the page and start over.”

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