- President Trump pardoned three co-founders and a former employee of the BitMEX exchange.
- They pleaded guilty to violating the Bank Secrecy Act for failing to enforce KYC/AML rules.
- The move aligns with Trump’s pro-crypto stance, fulfilling promises made during his campaign.
In a series of developments in the financial regulations of the crypto industry, President Donald Trump pardoned the co-founders of BitMEX, Arthur Hayes, Benjamin, Delo, and Samuel Reed, and its ex-employee. The pardon granted on March 27, 2025, clears their criminal records related to money laundering charges.
In 2020, the US Department of Justice (DOJ) convicted the three founders and its first employee, Gregory Dwyer, for violating the Bank Secrecy Act by failing to implement anti-money laundering (AML) and know-your-customer (KYC) protocols on their cryptocurrency derivatives exchange, BitMEX. These charges were part of a broader effort to regulate the crypto industry. Along with that, the Commodity Futures Trading Commission (CFTC) also imposed a $100 million civil penalty on BitMEX in August 2021 for similar violations. According to US Attorney Damian Williams, the co-founder’s failure to prevent money laundering was seen as a threat to the integrity of the financial system.
Further, in 2022, all four individuals pleaded guilty to one count of violating the Bank Secrecy Act. Each agreed to pay a $10 million fine and was sentenced to probation. Additionally, they faced civil penalities totaling $30 million related to a lawsuit by the CFTC.
Arthur Hayes was sentenced to six months of home confinement, followed by two years of probation. Delo had been sentenced to 30 months of probation, and Reed was sentenced to 18 months of probation.
Related: Elon Musk Confirms Presidential Pardon for Silk Road Founder
The pardons issued on March 27 clear the co-founder’s criminal records and remove the legal consequences of their convictions. Benjamin Delo described the pardon as a “vindication,” asserting that BitMEX and its cofounders should never have been charged. He also showed gratitude towards Trump, stating, “A legal wrong has been righted today.” Along with that, Aurthur Hayes expressed gratitude on his X post.
The pardons came the following day after Trump granted a pardon to Trevor Milton, the former CEO of Nikola Motors, who was convicted of fraud in 2022. Previous to these events, Trump also pardoned the Silk Road creator Ross Ulbricht, who was 11 years into a double life in prison, plus 40 years with no possibility of parole.
This decision aligns with Trump’s pro-crypto stance, as he sought crypto donors and pledged support during his campaigns. However, regulators and legal experts worry that these actions could weaken enforcement efforts in the crypto space, possibly encouraging firms to bypass compliance measures.
