WASHINGTON: U.S. President Donald Trump has issued full pardons to the co-founders of BitMEX, a major cryptocurrency exchange, along with a former high-ranking executive. The individuals receiving clemency include Arthur Hayes, Benjamin Delo, and Samuel Reed, as well as Gregory Dwyer, the company’s former head of business development.
All four had previously pleaded guilty to violating the Bank Secrecy Act by failing to enforce anti-money laundering and know-your-customer programs. Prosecutors accused BitMEX of operating as a money laundering platform while misleading regulators about its compliance policies.
The decision comes just months after BitMEX was ordered to pay $100 million in fines for regulatory violations. Following the announcement, Arthur Hayes responded on social media, simply stating, “Thank you POTUS.”
Benjamin Delo issued a statement expressing relief, arguing that the U.S. Department of Justice unfairly targeted BitMEX and its leadership. He said the full and unconditional pardon from President Trump was a validation of their stance that the company and its co-founders should never have faced criminal charges under what he described as an outdated law. He further argued that BitMEX was wrongfully made an example of for political reasons and used to send mixed regulatory signals.
Founded in 2014, BitMEX was accused of allowing U.S. traders to use its platform despite not having the proper compliance measures in place. According to the Manhattan U.S. Attorney’s Office, company executives were aware that American users were still accessing BitMEX through 2018. Authorities claimed the exchange’s policies to block U.S. users were ineffective, alleging that the company prioritized profits over compliance with financial laws.
As part of their previous convictions, Hayes had been sentenced to six months of home confinement followed by two years of probation. Delo had received 30 months of probation, while Reed and Dwyer were both sentenced to 18 months of probation. In addition to the criminal penalties, the Commodity Futures Trading Commission imposed civil fines totaling $30 million on the BitMEX founders.
Delo expressed gratitude for the pardon, stating that despite the hardships he faced, he was pleased to have cleared his name and could now move forward with his life and philanthropic work.