A U.S. federal judge has ordered cryptocurrency exchange BitMEX to pay a $100 million fine and serve two years of unsupervised probation for willfully violating the Bank Secrecy Act (BSA). The judgment, delivered on January 15, 2025, by Judge John Koeltl of the Southern District of New York, follows BitMEX’s guilty plea in July 2024, where the company admitted to operating without a meaningful anti-money laundering (AML) program.
BitMEX, officially known as HDR Global Trading Limited, was accused of failing to implement adequate AML and know-your-customer (KYC) procedures between 2015 and 2020, effectively allowing the platform to be used for money laundering. Prosecutors had sought a $417 million fine, arguing that BitMEX did not adequately accept responsibility. However, the court imposed a $100 million penalty, noting that the company and its founders had already paid approximately $110 million in prior criminal and civil cases.
In response to the sentencing, BitMEX referred to the charges as “old news,” emphasizing that it had been improving its user verification and AML/KYC programs even before the charges. The exchange had previously settled related conduct charges with U.S. regulators in 2021, agreeing to pay $100 million. In 2022, its three founders pleaded guilty to U.S. criminal charges, each paying a $10 million fine.
This case underscores the U.S. government’s commitment to enforcing compliance with financial regulations in the cryptocurrency industry. U.S. Attorney Matthew Podolsky stated, “Companies flouting these rules will face consequences.” The court’s decision serves as a warning to other cryptocurrency platforms about the importance of adhering to AML and KYC requirements to prevent illicit activities.
