BitMEX CTO Samuel Reed, who was indicted and arrested by the US Department of Justice on October 1st, was released on bail of $ 5 million. Reed is represented by lawyer William J. Trach.
BitMEX CTO Samuel Reed, who was indicted and arrested by the US Department of Justice on October 1st, was released on bail of $ 5 million.
The bond Reed paid for bail was approved on October 3, on the terms that he would surrender to court and serve his sentence if convicted.
The trial took place on 1 October via video conference. Reed is represented by lead attorney William J. Trach from Latham & Watkins LLP.
The $ 5 million bond was set as unsecured, $ 500,000 in cash. Reed and his wife’s passports were also reportedly confiscated.
Reed, 31, was arrested in Massachusetts for allegedly violating the Bank Privacy Act and failing to establish, implement, or maintain an adequate anti-money laundering (AML) program on BitMEX.
Reed was accused, along with co-founders and colleagues Arthur Hayes, Benjamin Delo, and freelance Gregory Dwyer.
Yesterday BitMEX announced that all four executives were removed from their positions due to accusations by the US government.
BitMEX was charged with two lawsuits by the Commodity Futures Trading Commission (CFTC) and the US Department of Justice on October 1st. The CFTC accused the derivatives exchange and its operators of operating an unregistered trading platform and violating anti-money laundering and know your customer regulations.
HDR Global Trading, the parent company of BitMEX and one of the defendants in the CFTC case, vowed to fight the charges.
More than 40,000 Bitcoins, currently worth about $ 435 million, were withdrawn from BitMEX, according to various data followers.
Open interest on BitMEX’s Bitcoin futures market fell from $ 1 billion to less than $ 600 million. It seems that the bad days for BitMEX will not end anytime soon.