BitMEX Co-Founder Delo Gets 30 Months Probation, Avoids Jail Time

BitMEX co-founder Ben Delo will carry out his sentence of 30 months of probation without being confined at home

share

key takeaways

  • Delo, along with Hayes, agreed to settle with the DOJ and CFTC and agreed to pay a $10 million fine in February
  • The co-founder has now resolved all regulatory cases relating to BitMEX, according to the law firm representing Delo

BitMEX co-founder Benjamin Delo has received 30 months on probation without home confinement following charges over his role in violating the US Bank Secrecy Act (BSA).

Delo, along with BitMEX founder Arthur Hayes, pleaded guilty to charges earlier this year by the Department of Justice (DOJ) which accused the pair of “willfully failing” to implement anti-money laundering measures at the exchange.

The case against the founders initially began two years ago when the DOJ accused Delo, Hayes and BitMEX’s first official employee Greg Dwyer of operating a “money-laundering platform” from September 2015 through to September 2020.

The exchange’s failure to implement AML and Know-Your-Customer programs were central to the department’s argument in the case for their violations of the BSA.

BSA violations carry a maximum sentence of five years, had the case gone to trial, but the pair were able to reach a plea agreement where the DOJ pushed for a 6-12 month prison sentence.

In a parallel civil case filed in February with the Commodity and Futures Trading Commission, both Hayes and Delo agreed to pay a $10 million fine, which also formed part of the agreement with the DOJ. For his involvement, Hayes previously received a six months sentence of home detention and two years of probation.

In a statement, a spokesperson for the New York-based law firm Smith Villazor LLP — representing Delo — said they were pleased the court rejected the government’s “cynical attempt to exaggerate the seriousness” of the BSA charge.

“Today’s sentence of probation recognized that this case involved a compliance lapse that led to a regulatory violation and nothing more,” the spokesperson said. “The government’s campaign — both in the courtroom and in the press — to malign Ben with highly inflammatory and misleading language concerning Ben’s conduct gained no traction with the court.”

Together with the recent settlement with the CFTC, Delo has now resolved all regulatory cases relating to BitMEX, the spokesperson said.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Templates.png

Research

ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.

article-image

Mt. Gox creditors are finally getting their bitcoin back — even if it’s only one click away from being sold

article-image

Plus, is Polymarket this cycle’s breakthrough mainstream app?

article-image

The crypto asset manager lowered its planned fee from 0.25% to 0.15%, undercutting its competitors

article-image

Plus, a look at planned ETH ETF fees and how they differ from their BTC counterparts

article-image

North Korea suspected in breach of Indian exchange’s multisig wallet

article-image

Plus, Sanctum’s CLOUD token has officially launched — but not without problems