Benjamin Dalo, the co-founder of crypto exchange BitMEX, received a sentence of 30 months on probation. Dalo violated the Bank Secrecy Act – an anti-money laundering law.
The sentence ends a legal saga that started in October 2020. Arthur Hayes and Samuel Reed (also BitMEX co-founders), as well as Gregory Dwyer (the company’s first official employee), were charged with similar violations. In May, Hayes received a sentence of a two-year probation period, along with six months in home detention.
The judge concluded that Dalo had willingly failed to implement an Anti-Money Laundering (AML) program at BitMEX. In February this year, Dalo pleaded guilty to the charges. However, the judge did note that BitMEX had eventually taken steps to become compliant with the law.
There is another factor contributing to Dalo receiving a less strict sentence than Hayes. That is the fact he had already paid a $10 million fine in May, when he settled in a civil case brought by the Commodity Futures Trading Commission (CFTC). The CFTC charged Dalo with violating aspects of the Commodity Exchange Act.
While he is a citizen of the United Kingdom, the judge allowed Dalo to leave the U.S. for Hong Kong, where he currently resides.