Arthur Hayes, who has a warrant out for his arrest by the U.S. government, was asked to turn himself in per legal documents cited by federal prosecutors, as reported by The Block.
Hayes is one of the BitMEX owners and executives charged with a breach of the U.S. Secrecy Act for their deliberate failure to develop and execute an effective AML software.
The founders of BitMEX, Benjamin Delo Hayes and Samuel Reed were indicted in New York, where they were accused of violating U.S. banking regulations. BitMEX was started in the Seychelles as a shell company because it was able to bribe officials, according to the indictment.
For the second time in the last year, Reed was jailed in Massachusetts.
BitMEX’s Current Operation
Following the Hayes scandal, the company reshuffled its top management, naming a new CEO. Until quite recently, the world’s biggest cryptocurrency futures market was Skew, but now it has been left in the dust by BitMEX.
As per a complaint filed on Thursday by the CFTC (Commission Federal Trade Commission) brought charges against five corporations and three individuals involved in operating the exchange.
Three members of the Bitmex co-Founder startup team have been targeted for embezzlement. Publicly, Hayes and Delo are being suspected of being the CEO and CTO of BitMEX are named as a few of the defendants. Reed, CEO of BitMEX was taken into custody by the US Marshals and eventually released. Delo and Dwyer, though, have been referred to as “running loose.”
BitMEX rumors have been making the rounds since July of this year. Use of the BitMEX service is expressly prohibited for U.S. residents, but CTFC has contended that it does not adequately address the issue.
What is BitMEX?
BitMEX is a cryptocurrency trading platform that also offers derivatives trading. It is owned and operated by HDR Global Trading Limited, a Seychelles-based company.
Arthur Hayes, Ben Delo, and Samuel Reed founded BitMEX in 2014 with the help of family and friends. Perpetual futures were launched in 2016, and they quickly became the exchange’s most common derivative option. Delo became the United Kingdom’s first bitcoin billionaire and the country’s youngest self-made billionaire in 2018.
An opponent of cryptocurrencies, Nouriel Roubini, indicated in July 2019 that the exchange is engaged in illicit activity by encouraging traders to carry on so much pressure and betting against clients.
Bloomberg announced two days later that the Commodity Futures Trading Commission (CFTC) was looking at whether BitMEX has broken the laws by encouraging Americans to sell on the exchange