CEO Arthur Hayes and co-founders Benjamin Delo, and Samuel Reed, as well as head of business development Gregory Dwyer, have stepped down after the U.S. Department of Justice indicted them for violating the Bank Secrecy Act and conspiring to violate the Bank Secrecy Act. The charges are based on what prosecutors say are deliberately weak and inefficient customer identification procedures.
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That's a whole lot of red in a report about crypto's determination to keep out criminals (Photo: CipherTrace)Crypto still a money launderer’s haven: CipherTrace report
According to the blockchain intelligence firm, 56% of all crypto firms ‘have weak or porous know-your customer processes, meaning money launderers can use’ their services
More than half of all cryptocurrency exchanges are so lax about making customers prove their identity that they can be considered money-launderer friendly.
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The feds are coming for DeFi
In the wake of criminal charges leveled at exchange and derivatives platform BitMEX, decentralized finance projects may find they’re not untouchable
The idea of decentralized finance is that there is no central authority in charge to control the exchange’s operations doesn’t mean they can get away with lax or no know-your-customer (KYC) and anti-money-laundering (AML) compliance. Or that there is no one to be held accountable.
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BitMEX users pull $340 million following criminal, civil charges
BitMEX users withdrew over 32,200 Bitcoins from the platform after the CFTC and Department of Justice hit the derivatives exchange with anti-money-laundering violations. Bitcoin promptly tanked
The users of cryptocurrency derivatives exchange BitMEX withdrew nearly one-fifth of all the funds stored in the company’s wallets.
