The first BitMEX employee pleaded guilty Monday to violating US banking secrecy laws by failing to establish an anti-money laundering program, following guilty pleas to the same charge by the three co-founders of the cryptocurrency exchange.
Gregory Dwyer, 39, of Australia and Bermuda, filed his plea before US District Judge John Koeltl in Manhattan. He also agreed to pay a $150,000 fine.
Prosecutors said that from 2015 to 2020, Dwyer and BitMEX founders Benjamin Delo, Arthur Hayes and Samuel Reed deliberately violated the federal Bank Secrecy Act by failing to adopt anti-money laundering and “know your customer” programs, causing the exchange to in fact became a money changer. money laundering platform.
Dwyer was head of business development at BitMEX, short for Bitcoin Mercantile Exchange.
He could face up to five years in prison, although Delo, Hayes and Reed were each sentenced to probation.
A lawyer for Dwyer did not immediately respond to requests for comment.
BitMEX agreed last August to pay up to $100 million to settle civil charges by two US financial regulators that it had failed to properly screen customers, and accepted money from customers to trade cryptocurrencies without being registered.