Crypto exchange BitMEX co-founder gets 6 months house arrest for US charges

Published May 23, 2022
Representations of virtual cryptocurrencies are placed on US dollar banknotes in this illustration. — Reuters
Representations of virtual cryptocurrencies are placed on US dollar banknotes in this illustration. — Reuters

The co-founder and former chief executive of the cryptocurrency exchange BitMEX has been sentenced to six months of house arrest after pleading guilty to violating the US Bank Secrecy Act, US prosecutors said.

Arthur Hayes, 36, will also pay a $10 million fine and serve two years of probation following his house arrest for failing to establish an anti-money laundering program at BitMEX, which he founded with Benjamin Delo and Samuel Reed in 2014.

Hayes was sentenced in federal court in Manhattan on Friday.

“While building a cryptocurrency platform that profited him millions of dollars, Arthur Hayes willfully defied US law that requires businesses to do their part to help in preventing crime and corruption,” Damian Williams, the top federal prosecutor in Manhattan, said in a statement.

Prosecutors had sought a “significant” prison term, saying a $10m fine was not enough to deter other cryptocurrency companies from similar behavior.

Hayes' lawyers had sought probation, without home detention.

A spokesperson for Hayes declined to comment on the sentence.

Delo and Reed have pleaded guilty and await sentencing.

The three were charged in 2020 with failing to implement a “know your customer” requirement as required by federal law.

Prosecutors said BitMEX was “in effect a money-laundering platform,” and Hayes did nothing after learning in 2018 of allegations that BitMEX was being used to launder proceeds from a cryptocurrency hack.

BitMEX last year agreed to pay up to $100m to settle separate charges for unlawfully accepting customer funds to trade cryptocurrency without being registered, and failing to conduct customer due diligence.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Limiting the damage
Updated 07 Mar, 2026

Limiting the damage

Govt plan to revive a range of Covid-era steps reflect a recognition that early restraint can limit disruptive interventions.
Diplomatic option
07 Mar, 2026

Diplomatic option

WITH Operation Ghazab lil Haq underway for over a week now, Pakistan has demonstrated that it can take firm action...
Polio, again
07 Mar, 2026

Polio, again

ANOTHER child has fallen victim to polio, this time in Sindh. The National Institute of Health this week confirmed...
On unstable ground
Updated 06 Mar, 2026

On unstable ground

PAKISTAN’S economic managers repeatedly tout improvements in macroeconomic indicators, including rising foreign...
Divide et impera
06 Mar, 2026

Divide et impera

AS if the high loss of life in Iran, regional escalation and economic turbulence caused by the US-Israeli aggression...
New approach needed
06 Mar, 2026

New approach needed

WITH one World Cup campaign ending in despair, Pakistan began to plan for the start of the cycle of another by...