BitMEX Co-Founder Benjamin Delo Sentenced: A Probationary Twist to a Crypto Saga

Background of the Case

Benjamin Delo, the co-founder of the cryptocurrency exchange BitMEX, has recently been sentenced to 30 months of probation after pleading guilty to violations of the Bank Secrecy Act (BSA) – an Anti-Money Laundering (AML) law that aims to combat the influx of dirty money into the financial system. This legal fallout started back in October 2020, dragging fellow BitMEX co-founders Arthur Hayes and Samuel Reed along for the ride, as they also faced the music for similar transgressions.

Judge’s Ruling and Sentencing

On a crisp Wednesday in a federal court in New York, Delo’s fate was determined. Judge John Koeltl acknowledged the gravity of Delo’s actions, stating they were “very serious” and emphasized that Delo was aware of BitMEX’s illegal operations regarding the lack of AML and Know Your Customer (KYC) measures. Yet, in a twist that would make any courtroom drama worth watching, Delo received a lighter sentence compared to other executives, despite prosecutors pressing for a year of prison time.

Reflection and Regret

In a compelling moment during the proceedings, Delo reflected on his mistakes, stating, “When I look back, I see a fundamental failure to address a flaw in our systems.” This heartfelt admission sheds light on his regret and his commitment to ensuring his brush with the law ends here. His legal team was quick to express satisfaction with the outcome, rebuffing the prosecution’s attempt to amplify the severity of the charges.

Living Out the Probation Terms

As a UK citizen living in Hong Kong, Delo will serve his probation there instead of being shackled to the good ol’ U.S. of A. This arrangement will allow him to continue his life while still being under watchful eyes. So, if you’re thinking of inviting him to a party, remember that he’ll likely have a few restrictions on his freedom, including avoiding too many wild crypto-related shenanigans.

The Ripple Effect

Meanwhile, the drama continues with other BitMEX associates. Take Greg Dwyer, the head of business development, currently crafting his own legal narrative from Bermuda. He’s in talks with federal court about pushing back deadlines, indicating that the complexities surrounding BitMEX are far from over. A letter from Dwyer’s attorney hints at ongoing negotiations to find a resolution: “The parties continue to engage in discussions regarding a possible resolution to the matter.” Stay tuned, folks; this crypto saga has plenty left to unfold.