BitMEX Settles with US CFTC and FinCEN, Agrees to Pay $100 Million

Cryptocurrency trading platform BitMEX has settled with the US Commodity Futures Trading Commission (CFTC), and Financial Crimes Enforcement Network (FinCEN) in the context of an investigation pursued against five companies charged with operating the crypto trading platform. According to the company, they agreed to pay $100 million as civil monetary penalty to resolve the charges.

“Today marks an important day in our company’s history, and we are very glad to put this behind us. As crypto matures and enters a new era, we too have evolved into the largest crypto derivatives platform with a fully verified user base. 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, commented. The consent order was entered before the US District Court for the Southern District of New York. The companies involved were HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited, and HDR Global Services (Bermuda) Limited.

“This case reinforces the expectation that the digital assets industry, as it continues to touch a broader pool of market participants, takes seriously its responsibilities in the regulated financial industry and its duties to develop and adhere to a culture of compliance. The CFTC will take prompt action when activities impacting CFTC jurisdictional markets raise customer and consumer protection concerns,” Rostin Behnam, CFTC Acting Chairman, said in a press release.

A ‘New Chapter’

During the announcement, BitMEX’s team pointed out that such a resolution marks a “new chapter” for the crypto firm. “Crypto is sparking fundamental change that isn’t going away. This technology is having incredible benefits for financial freedom, economic empowerment, and investing. Just as NFTs are changing the art world, crypto will have a widespread positive impact in just about every industry imaginable, including intellectual property, real estate, health, and of course, financial markets,” the company noted.