Bloomberg Law
Oct. 1, 2020, 7:17 PM

BitMEX Founders Charged With Failing to Prevent Laundering (3)

Chris Dolmetsch
Chris Dolmetsch
Bloomberg News

Founders of the pioneering crypto-derivatives exchange BitMEX were charged with skirting U.S. laws preventing money laundering and hit with civil sanctions as well, abruptly sending the price of Bitcoin down.

Arthur Hayes, Benjamin Delo and Samuel Reed were indicted in New York, where federal prosecutors claim the digital-asset exchange served American customers while flouting U.S. banking laws. Hayes said the exchange was incorporated in the Seychelles because they could bribe authorities there for the cost of “just a coconut,” according to the indictment, unsealed Thursday.

Arthur Hayes
Photographer: Michael Nagle/Bloomberg

“They will soon learn the price of their alleged crimes will not be paid ...