Trump Pardons BitMEX Co-Founders In Latest Wave Of Crypto Clemency – FinanceFeeds
In a surprising turn of events, former BitMEX executives Arthur Hayes, Benjamin Delo, and Samuel Reed have reportedly been granted pardons by U.S. President Donald Trump. This development follows reports of their involvement in violating federal anti-money laundering statutes, which had led to their felony convictions linked to their leadership roles at the cryptocurrency derivatives exchange.
The legal troubles of Hayes, Delo, and Reed began when they admitted to inadequacies in their implementation of a robust Anti-Money Laundering (AML) program at BitMEX. Their admissions came in 2022, with Reed conceding similarly soon thereafter. The trio was consequently charged under the Bank Secrecy Act and faced sentences of probation or home confinement, along with hefty fines of $10 million each.
While the White House has yet to release an official statement confirming these pardons, the use of clemency would elevate Hayes, Delo, and Reed among the most prominent figures in the cryptocurrency space to receive such a reprieve from Trump’s administration.
Since his inauguration in January, Trump has been known for a number of contentious acts of clemency, extending pardons to individuals implicated in events such as the January 6 Capitol unrest. This pattern of pardoning aligns with a history where Trump has also extended clemency to figures like Silk Road founder Ross Ulbricht. Speculation had also placed former FTX CEO Sam Bankman-Fried under potential lobbying efforts for clemency, despite his ongoing 25-year incarceration.
BitMEX, which was once one of the leading platforms in the crypto derivatives space, faced intense scrutiny from regulators in 2020. At that time, Hayes, Reed, and Delo, along with the company’s first employee, Gregory Dwyer, were accused of failing to properly register the exchange and of breaching AML regulations. The pressure from these allegations even led to Hayes vacating his position as CEO amidst the legal turmoil.
The penalties didn’t just end with criminal charges. In 2021, BitMEX and its overarching entity, HDR Global Trading, were required to settle civil fines amounting to $100 million, imposed by both the U.S. Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN). However, this was not the end, as in January 2024, the company faced another steep $100 million fine and was placed under two years of unsupervised probation.
President Trump’s decision to grant pardons to Hayes, Delo, and Reed raises questions about the motives since the executives had already served their respective sentences. Yet, this move is consistent with a broader trend of President Trump championing clemency for figures associated with the cryptocurrency sector, as he continues to establish himself as a proponent of the crypto industry.
As the news continues to make waves across the crypto community, it signifies how the intertwining of politics and financial technology can influence narratives around digital currencies and regulatory enforcement.
