BitMEX, one of the largest virtual currency derivatives exchanges, has agreed to pay up to $100 million to settle U.S. charges of unlawfully accepting customer funds to trade cryptocurrencies when it was not registered to do so as well as failure to conduct customer due diligence.
The U.S. Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN) unit of the U.S. Treasury Department on Tuesday alleged that for six years, BitMEX sold cryptocurrency derivatives to U.S. customers without properly registering with U.S. authorities.
BitMEX also failed to implement and maintain proper compliance programs to identify customers and prevent money laundering. The exchange also failed to report suspicious activity, the U.S. authorities said.
The five companies charged with operating BitMEX agreed to pay $80 million to settle the charges, with another $20 million suspended pending reviews.
BitMEX, which did not admit or deny the findings, said it has made a series of moves to boost its compliance.
“Comprehensive user verification, robust compliance, and anti-money laundering capabilities are not only hallmarks of our business – they are drivers of our long-term success,” Alexander Höptner, chief executive officer of BitMEX, said in a statement.
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