Did BitMEX CTO Cooperate with Judicial Authorities?


BitMEX CTO Samuel Reed was indicted and arrested by the US Department of Justice on October 1st. Reed was later released on $ 5 million bail. Reed paid 500 thousand dollars of this amount in cash.

Reed, 31, is accused of violating the Bank Privacy Act and failing to create an adequate anti-money laundering (AML) program on BitMEX.

Stephen D. Palley, the name known by the cryptocurrency community, who made statements on the subject, stated that it was a very tolerant attitude to be paid only 500 thousand dollars.

Speaking on the subject, Palley talked about the possibility of Reed’s cooperation with the judicial authorities based on this situation. Palley said:

“Apparently, Bitmex’s CTO was arrested, a lawyer from Latham worked for him, bail was set at $ 5m and he was released after paying $ 500,000. Highly tolerant conditions of release. I have to believe he or she will cooperate. Of course, that’s speculation on my part, but it’s a very strong incentive for the guy to turn around at this point. Feds could be released on bail or impose significantly stricter conditions on evacuation. It’s not great, but it can be a lot more troublesome. ”

What Happened?

Reed, 31, was charged by the US Department of Justice on October 1 and arrested in Massachusetts. Not only Reed but also co-founders Arthur Hayes, Benjamin Delo and Gregory Dwyer were blamed for the matter. As we reported yesterday, BitMEX announced that all four executives resigned after these events. According to various claims, approximately $ 435 million worth of Bitcoin has been withdrawn from BitMEX so far.

See Also
BitMEX CEO firmly clings to $ 100,000 forecast for YFI

Analysts continue to say this is troubling in the short term, but will be good for Bitcoin in the long run.


Please enter your comment!
Please enter your name here