Bitmex Co-Founder Arthur Hayes avoids going to prison by paying a hefty fine of $10 million. He has been left off the hook with 6 months of home detention and 2 years of probation. The charges on Arthur were for violating the U.S. Bank Secrecy Act. This shows how easily people get away with crimes if they have deep pockets.
What is the U.S. Bank Secrecy Act?
The Bank Secrecy Act (BSA), also known as the Currency and Foreign Transactions Reporting Act, is U.S. legislation enacted in 1970 to prevent financial institutions from being used as tools by criminals to conceal or launder their illicit gains.
The law mandates banks and other financial organizations to submit regulators with paperwork such as currency transaction reports. Banks may be forced to provide such documents anytime their clients engage with questionable cash transactions involving sums in excess of $10,000. The law makes it easier for authorities to reconstruct the nature of the transactions.
It was implemented to better identify when money laundering is used to further a criminal enterprise, fund terrorism, conceal tax fraud, or conceal other illegal actions. The Act was initially used to combat the funding of criminal organizations, but it quickly expanded to cover the funding of terrorist groups.
Bitmex co-founder violating the Bank Secrecy Act
Crypto exchanges in the U.S. are required to follow certain laws and regulations that make it difficult for criminals to take advantage of the platform. This helps in preventing crime and money laundering problems that are closely associated with crypto. Arthur Hayes, the co-founder of Bitmex, was found guilty of willfully defying the U.S. laws that were a part of the BSA. It has allowed them to make millions of dollars but at the expense of illegal activities.
U.S. Attorney Damian Willaims also said that Arthur even failed to implement even the most basic anti-money laundering measures. It made Bitmex operate in shows in the markets, which is a haven for criminals. The other co-founders were also fined $10 million each and are soon to be given a sentence over the case.
What are your thoughts as Bitmex Co-Founder avoids going to prison by paying a $10 million fine? And do you think that stricter actions should have been taken? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Swiss watch company TAG Heuer enables crypto payments.
