Recently the crypto giant BitMEX’s founder surrendered to the US officials. As per reposts, he has charges of crossing money laundering laws against him. Benjamin Delo who also founded BitMex in 2014 is a leading entrepreneur. He was also under custody for a malicious money laundering claim. But recently news surfaced on Monday that he applied for a $20 million bail bond. This happened after he pled not guilty during a remote proceeding.

Personal History

Benjamin was facing serious allegations of money laundering while residing in Britain. He also graduated from Oxford in computer science. And has closely worked with Chase & JPMorgan where he created trading platforms. After which Delo founded the dethroned Crypto mammoth BitMex. Along with Samael Reed and Arthur Hayes he founded the exchange back in 2015. After which all three of them are facing serious legal allegations.

What was the crime?

Back in October, all the founders of BitMex faced serious allegations. They received a notice stating, they broke the law by ignoring the prerequisites. Before this BitMex launched its very own futures and options trading platform. Whereas, the officials also reacted to this. They said BitMex did not register with the CFTC. As any exchange offering future trading options have to register with CFTC.
The officials stated that BitMex allowed users to deposit bitcoin without registration. They also allowed commodity trading without verifying the whereabouts of the initiator. Due to this, this falls under the Anti-money laundering law. BitMex broke this. They also questioned why BitMex allowed deposits without any KYC verifications.

When was this Proceeding?

On Monday, Mar 15th, Delo came to New York from the UK to negotiate with the federal agency. He negotiated the surrender agreement with the FBI and other officials. He was directly handled by Sarah L Cave who is a US magistrate.

What about the Others?

Besides Delo, both of his partners along with a senior executive are facing similar charges. The CTO of the company Samuel Reed got arrested in OCT’20 in Massachusetts. DOJ and CFTC first caught him. Soon after this he also received bail.

BitMex Opinion

Rache Miller who is also the representative of Delo has an interview recently. He claims that the authorities don’t have anything against his client. He further mentions that Delo will want to defend against all such charges. All other partners are also under strict watch.
The Federal Bureau also charged all the founders with equal charges. Claiming that they have practiced maliciously against the Federal Standards. The core reason behind all this was future trading. The company couldn’t register with the CFTC. Therefore, it is currently facing many legal matters.
Sayan Mitra
Sayan Mitra

Sayan is a writer by choice or rather by instincts. He had started as a content writer for an infrastructure development website. Over the years, he has been involved in several versatile projects, ranging from blogging to creative writing, penning down web content to site reviews. Tourism, fashion, real estate, gambling, sports, politics, business proposals, presentation work, technical writing, generalized topics – Sayan has done it all, with his words.