BitMEX Co-Founder Might Get 5-Year Prison Sentence For Money Laundering Laws Violation

81

As the news of the case spread, the agenda shook again with the statement made by the Ministry of Justice. The Justice Department announced that Samuel Reed, co-founder of Bitmex, has been arrested. It is rumored that co-founder Reed could get a 5-year prison sentence.

Details of the lawsuit filed by the CFTC are included in a 40-page published document. The document includes many other companies as defendants.

Bitmex, one of the leading crypto exchanges, was sued by the US Commodity Futures Contracts Trading Commission (CFTC) for operating illegal exchanges and anti-money laundering. In the statement made by the ministry after the case, it was informed that the founding partner of the exchange, Samuel Reed, was arrested. These developments negatively affected Bitcoin, causing the price to decline from $ 10,900 to $ 10,490 in a short time.

The US Commodity Futures Contracts Trading Commission (CFTC) sued the exchange’s top officials Greg Dwyer, Arthur Hayes, Ben Delo, and Samuel Reed for violating laws such as running an illegal exchange and preventing money laundering, know your customer. Bitmex has been under the control and pressure of the CFTC since last year as part of its know your customer procedures. With this pressure, the platform implemented KVC policies.