New York Court fines BitMEX founders to pay $30M civil penalty

BitMex three co-founders have been order to pay $30 million fines for what the CETC calls their involvement in serious violations of regulations and the Commodity Exchange Act. 

New York Court fines BitMEX founders to pay $30M civil penalty

According to the CFTC Statment Hayes, Benjamin Delo, and Samuel Reed were each fined $10 million in consent payments, in this statement Commodity Futures Trading Commission (CFTC) after a court battle on Thursday in which the CFTC said they violated aspects of the Commodity Exchange Act and CFTC regulation from November 2014 to October 2020. 

CFTC Commissioner Caroline D. Pham said enabling "unregistered companies" to function in violation of the law gives "wrongdoers with an unfair advantage over those who are doing the right thing" by adhering to the rules laid down by the regulators. She added 

“By enforcing individual accountability for registration, market conduct, and anti-money laundering rules – fundamental aspects of the U.S. regulatory framework – the CFTC is ensuring that BitMEX’s management is held responsible after last year’s $100 million settlement with corporate defendants.”

Read: Dubai establishes virtual asset regulator with announcing new crypto law