US regulators sued and arrested them on charges of John Mcafee’s tax evasion and BitMEX executives’ money laundering violations. Regulators have shown that cryptocurrency pioneers who do not follow the rules will not be able to escape the law.
Although a BitMEX executive has already been arrested, BitMEX’s CEO and co-founder Arthur Hayes may not appear before a US courts anytime soon.
Hayes, a resident of Hong Kong, may not have to go to the US because of the political turmoil in the region last year, which has led the US and Hong Kong to suspend extradition deals.
A lawyer named Ross Feingold also said the following on the subject:
“If Arthur Hayes does not have a permanent residence, the Immigration Service can void his right to stay in Hong Kong. Still, we will look at whether the Hong Kong government is willing to help the United States. ”
Feingold said, “The likelihood of such an extradition arrangement is low, especially in the current environment of US-Hong Kong and US-China relations, and following the US decision to suspend the bilateral extradition agreement.” He added that Hong Kong’s political leaders will have to go out of their way to aid US law enforcement for this extradition to take place.
The accusations against BitMEX and Hayes intensified on the grounds that the cryptocurrency exchange did not properly operate its “know your customer / anti-money laundering” (KYC / AMC) policies.
Despite operating for years, BitMEX implemented such a policy only a few months ago.
BitMEX has probably been aware of the US government’s interest in its activities for some time. Bloomberg reported a year ago that an investigation was launched into the company by the Commodity Futures Trading Commission.
If BitMEX is already on the US government’s radar and agrees to change KYC / AML policies before the charges are made, will that help its case? BitMEX administrators encouraged US-based users to sign up on the platform via a VPN, which will work against them in court.
“We strongly disagree with the US government’s tough decision on these accusations, and we plan to defend ourselves strongly,” the company said in a post. “From our early days as a start-up, we have always tried to comply with applicable US laws because those laws were based on those existing at the time.” he added.