Former Head of Business Development at Bitmex, Gregory Dwyer has pleaded guilty to charges that he failed to implement stringent Know-Your-Customer (KYC) and Anti-MoneyLaundering (AML) rules. This is the latest development in a string of legal battles between the United States and Bitmex leadership/the platform itself.
Since 2020, the United States have filed numerous charges against Bitmex staff and the cryptocurrency company itself. So far, three of Bitmex’s co-founders have all received sentences ranging from short-term house arrests to a $10 million fine in the case of Arthur Hayes, an equal fine for Samuel Reed and probation for Benjamin Delo.
The cases against Bitmex execs were not limited to their co-founders alone as yesterday, one of Bitmex’s pioneer employees and former Head of Business Development pleaded guilty to violation of the US Bank Secrecy Act by failing to comply with, implement and maintain the United States anti-moneylaundering (AML) laws at Bitmex while aiding and abetting the same.
Gregory Dwyer, 39, pleaded guilty in a US District court which was presided over by Judge John G. Koetl and he will pay a $150,000 fine as part of the plea deal. According to the prosecution, Gregory willfully failed to implement stringent AML and KYC procedures that would have hindered U.S. customers from gaining access to Bitmex and carrying out transactions.
Although Bitmex had legally withdrawn from the U.S. market since 2015, the security measures that Gregory was responsible for at that time could have been flouted easily by anyone with rudimentary technical know-how. This paved a way for criminals to use the platform for money laundering and other criminal activities.
The $150,000 fine represents what the court believes to be the pecuniary gain as a result of the loose regulation under the purview of Mr. Gregory. Attorney Damian Williams reiterated in closing that the U.S. legal system will not turn a blind eye to cryptocurrency platforms and exchanges in the country that are responsible for legal violations beyond the upper level of management.
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