BitMEX slapped with $100M penalty for US Bank Secrecy Act violations

The US Department of Justice announced on Jan. 15 that BitMEX and its parent company, HDR Global Trading Limited, have been fined $100 million for violating the Bank Secrecy Act (BSA).

The firms pleaded guilty to the violations in July 2024 after a lengthy legal process. The DOJ had initially sought penalties exceeding $200 million and later escalated that figure to $420 million. However, the court imposed a significantly lower penalty, according to a statement released by HDR.

The company said in a statement:

“We are disappointed by this outcome, though we note the penalty is substantially less than the DOJ’s aggressive demands.”

It also criticized the lengthy legal process and questioned whether taxpayer resources could have been better utilized.

BSA violations

The case stems from allegations that BitMEX operated without adequate anti-money laundering (AML) and know-your-customer (KYC) protocols during the period under scrutiny.

However, BitMEX emphasized its significant strides in compliance since then, highlighting the implementation of a “best-in-class user verification program” and robust AML systems.

The company said:

“Our compliance standards have transformed dramatically since the time of the BSA charge.”

The fine marks a continuation of legal and regulatory challenges for BitMEX, which has faced increased scrutiny from global regulators in recent years.

Despite these challenges, HDR stressed its commitment to innovation and maintaining its position as a leader in the crypto derivatives market.

‘Old news’

BitMEX has sought to move past the legal entanglements, reiterating that the charges are “old news.” The platform said it plans to focus on enhancing its products and services while maintaining what it describes as industry-leading security and operational stability.

The company, headquartered in the Seychelles, remains restricted from operating in the US due to its regulatory framework. It maintains stringent measures to prevent unauthorized access from restricted jurisdictions.

BitMEX continues to market itself as a pioneer in the crypto trading space, with offerings such as high-leverage perpetual contracts. The platform affirmed its commitment to delivering innovative solutions to its global user base, describing itself as “the safest, most trusted, financially stable” exchange in the industry.

The financial penalty adds to the ongoing challenges for HDR and BitMEX as they seek to restore their reputation and build on their compliance overhaul.