BitMEX CEO quits his position after accusations from CFTC and DoJ

Crypto derivatives exchange BitMEX announces leadership changes, a week after the CFTC and DoJ accused its four founders and executives.

By · Oct 9, 2020 . 6min read

BitMEX CEO quits latest news

The CEO of Bitcoin derivatives exchange BitMEX, and some of its leadership team have stepped down owing to the accusations from U.S. regulators that it was working illegally. CEO Arthur Hayes and CTO Samuel Reed, who was arrested by the DoJ, have stepped back from all executive management responsibilities with immediate effect.

Intricate details about BitMEX violating laws

Recently, the U.S. CFTC (Commodity Futures Trading Commission) imposed BitMEX with operating an unregistered trading platform and disrupting anti-money laundering know-your-customer regulations. The Department of Justice (DOJ) also registered a criminal accusation against founders Arthur Hayes, Ben Delo, and Samuel Reed. They are accused of purportedly violating the Bank Secrecy Act. 

For the uninformed, BitMEX operates under different entities, largely offshore. Entities as defendants in the prosecution for the violation include ABS Global Trading Limited, HDR Global Trading Limited, 100x Holding Limited, Shine Effort Inc Limited, and HDR Global Services (Bermuda) Limited (BitMEX).

Changes in BitMEX’s leadership team.

According to an official announcement from BitMEX, CEO Arthur Hayes and CTO Samuel Reed are no longer responsible for all executive management capacities for their jobs. Additionally, Dwyer, the other executive, charged by the DOJ, will leave absence from his role as Head of Business Development. Another defendant in the case, founder Ben Delo, will not continue at executive positions in the 100x Group. 100x Group is the parent company of BitMEX.

CEO Arthur Hayes’ interim replacement will be Vivien Khoo. He was the Chief Operating Officer of 100x Group up to this point. Moreover, Ben Radclyffe will have supplementary responsibility for client relationship handling and oversight of financial products in his role as commercial director.

According to the blog post, BitMEX’s technology team’s senior leaders will manage the day-to-day management platform. It also introduced a lengthy statement from David Wong, chairman of the 100x Group. Moreover, he says that executive leadership changes indicate that they can concentrate on providing excellent trading opportunities for all clients.

Moreover, in a blog post published last week, BitMEX elucidated its plan to fight the allegations vigorously. However, owing to the lawsuit, BitMEX has observed large withdrawals in recent days. According to various data trackers, approximately 40,000 bitcoin, currently worth about $422 million, has been withdrawn from BitMEX.

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