Crypto pioneer Arthur Hayes has been under investigation by the feds and the Commodity Futures Trading Commission since 2019 and the CEO of fintech company BitMEX could turn himself in on April 6.
The feds filed criminal charges against BitMEX CEO Hayes in October, accusing him of providing a haven for hackers and illegal transactions that helped clients to launder money.
Federal prosecutors in Manhattan indicted Hayes and three BitMEX co-owners, Benjamin Delo, Samuel Reed, and Gregory Dwyer. Hayes remains at large.
The Hong Kong-based BitMEX is one of the world’s biggest cryptocurrency trading exchanges and claims to have processed more than $1.7 billion in daily derivatives transactions, Inside Cryptocurrency reported.
Hayes, who is living in Singapore, will be able to remain there under the agreement his attorneys are negotiating with federal prosecutors, Coindesk reported.
Jessica Greenwood, an assistant U.S. attorney for the Southern District of New York, said in a Feb. 16 court transcript that her office had been in talks with Hayes’ lawyers about surrendering to U.S. law enforcement officials.
According to a press release, the CFTC alleged that BitMEX received some $11 billion in bitcoin deposits and made more than $1 billion in fees, “while conducting significant aspects of its business from the U.S. and accepting orders and funds from U.S. customers.”
Black Americans Have the Highest Mortality Rates But Lowest Levels of Life Insurance
Are you prioritizing your cable entertainment bill over protecting and investing in your family?
Smart Policies are as low as $30 a month, No Medical Exam Required
Click Here to Get Smart on Protecting Your Family and Loves Ones, No Matter What Happens
Among the changes, BitMEX is accused of executing futures transactions on an unregistered board and offering illegal options, Coindesk reported.
BitMEX has distanced itself from Hayes — he stepped down, the firm changed its executive ranks and appointed a new CEO, Bloomberg reported.
Hayes, who lived large with international adventures, “flouted’ the law by operating in the ‘shadows of the financial markets,’” wrote Vanity Fair.
Hayes obtained his B.A. in economics at the Wharton School of Business in 2008. He moved to Hong Kong and worked as an equity derivatives trader for Deutsche Bank and Citigroup. He was the head ETF market maker at both firms. In January 2014, he co-founded BitMEX, according to his bio on the Jackie Robinson Foundation website. Hayes was on the foundation’s board.
Listen to GHOGH with Jamarlin Martin | Episode 73: Jamarlin Martin Jamarlin makes the case for why this is a multi-factor rebellion vs. just protests about George Floyd. He discusses the Democratic Party’s sneaky relationship with the police in cities and states under Dem control, and why Joe Biden is a cop and the Steve Jobs of mass incarceration.
Born to middle-class parents, Hayes lived in Detroit, Michigan, and Buffalo, New York.
The 35-year-old African-American banker faces a possible penalty of 10 years in prison.