BitMEX Slapped With $100 Million Fine For Violating Anti-Money Laundering Laws

BitMEX, the cryptocurrency trading platform, has incurred a substantial $100 million penalty for contravening US anti-money laundering (AML) requirements.

This penalty arises from the company’s noncompliance with the US Bank Secrecy Act (BSA), which permitted unlawful transactions on its platform for multiple years.

Noncompliance With KYC And AML Regulations

The violation stems from BitMEX’s lack of sufficient Know Your Customer (KYC) processes, which are necessary for any platform operating in the US. The goal of these protocols is to prevent illegal financial activities like money laundering.

BitMEX’s inability to enforce these rules permitted US users to circumvent regulations and engage in illicit trading on the platform, resulting in the infractions.

Cryptocurrency exchange BitMEX has been fined $100 million for violating the federal Bank Secrecy Act by failing to adequately police money laundering, the DOJ said https://t.co/9hUmB2w2TD pic.twitter.com/nwZpcLD9gD

— Reuters Legal (@ReutersLegal) January 15, 2025

Repercussions For BitMEX Founders

BitMEX as a whole is not the exclusive target of the penalty. There are legal ramifications for the platform’s developers, who actively oversaw these breaches.

Their failure to ensure compliance has significantly increased the penalty. This case highlights the financial and personal risks faced by CEOs of bitcoin exchanges that fail to set up regulatory frameworks.