In wake of indictments, BitMEX operator appoints former Börse Stuttgart exec as CEO

The BitMEX cryptocurrency exchange’s owner 100x Group announced the appointment of Alexander Höptner as the new firm’s CEO today.

He replaces Arthur Hayes, who resigned as CEO in early October after he and his fellow founders were indicted by the U.S Department of Justice on charges they violated anti-money-laundering (AML) laws. 

According to the Dec. 1 announcement, Höptner previously worked as the CEO of German stock exchange Börse Stuttgart GmbH and its financial services provider Euwax AG. He said:

“I am proud to join 100x Group because I share the global ambition and audacity of its founders and employees to create an ecosystem of cryptocurrency technology that will improve lives. The future of this industry will increasingly belong to those who provide a regulated trading environment that is innovative, liquid, and fair for institutional and retail investors alike.”

Höptner reportedly led Börse Stuttgart as the firm started offering regulated cryptocurrency trading services inside the European Union, from Germany. The exchange said it was the European Union’s first traditional exchange operator to become a regulated crypto multilateral trading facility.

100x Group Chairman Dr. David Wong explained that Höptner joins the firm in a critical time, when the company is undergoing profound change to achieve further growth. Wong also said he expects Höptner’s experience will allow him to make a major contribution to the organization.

The BitMEX operator found itself in the midst of a major controversy that made waves across the entire cryptocurrency industry and market on Oct. 1. Along withBitMEX CEO Hayes, co-founders Benjamin Delo, Samuel Reed, and head of business development Gregory Dwyer were indicted for AML violations. CTO Reed was arrested and subsequently released on $5 million bail. The company and its executives were also sued by that CFTC over AML violations at the same time..

In another move that seemed to be aimed to earn back public—and regulatory—trust, 100x Group also hired Malcolm Wright, Global Digital Finance’s anti-money laundering working group advisory council chairman, as its chief compliance officer in mid-October. At the time, he said:

“For me, compliance is non-negotiable, and a prerequisite for exchanges to be embraced by regulators and institutional investors alike.”