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Greg Dwyer of BitMEX pleads guilty to money laundering

Greg Dwyer of BitMEX pleads guilty to money laundering WikiBit 2022-08-10 16:30

Gregory Dwyer previously served as head of Business Development at BitMEX. Plea bargain calls for him to spend five years in prison and pay $150,000 fine. Follows co-founders Benjamin Delo, Arthur Hayes and Samuel Reed's guilty pleas.

First employee of BitMEX cryptocurrency derivatives exchange pleads guilty to violating U.S. anti-money laundering law. The news was released on Monday by the US Attorney for the Southern District of New York.

Gregory Dwyer, who previously served as the head of Business Development at BitMEX, pleaded guilty to violating the Bank Secrecy Act for failing to establish, implement, and maintain an anti-money laundering program at BitMEX.

Dwyer, a 39-year-old citizen of Australia and Bermuda, entered his plea before U.S. District Judge John Koeltl in Manhattan.

Dwyer entered into a plea bargain with the government that calls for him to spend five years in prison and pay a $150,000 fine.

“Today's plea reflects that employees with management authority at cryptocurrency exchanges, no less than the founders of such exchanges, cannot willfully disregard their obligations under the Bank Secrecy Act,” said U.S. Attorney Damian Williams.

Following the guilty pleas of the cryptocurrency exchange's three co-founders, Dwyer has admitted to committing the same crimes (Benjamin Delo, Arthur Hayes and Samuel Reed).

Prosecutors stated that from 2015 to 2020, Dwyer and BitMEX co-founders intentionally violated the federal Bank Secrecy Act by failing to adopt “know your customer” and anti-money laundering programs, thus turning the exchange into a money laundering platform.

Earlier this year in February, Delo, Reed, and Hayes all copped to “willfully failing to establish, implement, and maintain an Anti-Money Laundering (AML) program.”

In May, the US Commodity Futures Trading Commission (CFTC) fined the three BitMEX co-founders $10 million each for breaching anti-money laundering (AML) requirements and each was sentenced to probation.

The three were accused of facilitating up to $209 million in suspicious transactions by failing to implement Know Your Customer (KYC) procedures for their U.S. customers.

In August last year, BitMEX agreed to pay $100 million to settle civil allegations that it allowed illegal trades for years and violated rules requiring anti-money-laundering programs.

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