A federal judge handed cryptocurrency exchange BitMEX a $100 million fine, bringing a years-long legal battle to a close. The penalty involves the firm’s guilty plea in 2022 for violating the US Bank Secrecy Act (BSA), a charge that revolved around its failure to implement sufficient Anti-Money Laundering (AML) protocols.

A Reduced Penalty in a Lengthy Dispute

BitMEX's insufficient AML measures were at the center of the case. Instead of following Know Your Customer (KYC) Know Your Customer (KYC) Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Read this Term standards, the exchange required only email addresses from its users, a move the US Attorney’s office deemed a disregard for legal requirements.

Originally, the US government pursued a $417 million penalty, alleging BitMEX unlawfully gained $155 million from US sources between 2015 and 2020. The final judgment, however, settled on $100 million, a figure significantly lower than the initial demand.

BitMEX, operated by HDR Global Trading Limited, acknowledged the fine but framed it as a victory of sorts. “The amount is substantially less than what the Department of Justice has been pursuing us for over three years,” the firm said, adding that taxpayer resources might have been better spent elsewhere.