BitMEX’s Arthur Hayes surrenders in Hawaii, released on $10M bond

The former CEO of BitMEX surrendered in Hawaii and was later released after posting a $10 million bond.

Former BitMEX CEO Arthur Hayes surrendered to U.S. authorities in Hawaii on Tuesday, six months after federal prosecutors first levied charges against him and three fellow BitMEX executives.

In a statement, Hayes’ lawyers described the Singapore resident as “a self-made entrepreneur who has been wrongly accused of crimes that he did not commit,” adding:

“Mr. Hayes voluntarily appeared in court and looks forward to fighting these unwarranted charges.”

Hayes was released after posting a $10 million bail bond pending future proceedings in New York.

Hayes’ lawyers proposed his surrender in Hawaii last month. Discussions centered around Hayes’ potential release subject to the $10 million bail bond, his retention of a passport for travel between Singapore and the United States, and a waiver of extradition mutually agreed upon by both parties.

Hayes’ representation began talks with the U.S. government after his indictment was unsealed in October 2020.

The government accuses Hayes, BitMEX co-owners Ben Delo and Greg Dwyer, and former BitMEX CTO Samuel Reed of violating the Bank Secrecy Act by failing to maintain adequate anti-money laundering safeguards and failing to prevent U.S. residents from accessing the exchange despite the company not being registered with the Commodity Futures Trading Commission.

Reed was arrested in October, while Delo voluntarily surrendered to authorities in New York last month, with both pleading not guilty and being released on bond. Dwyer remains at large, however his lawyers state they have notified the U.S. government as to Dwyer’s whereabouts and intention to fight the charges against him.

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Court Filing Accuses Bitmex Cofounders of ‘Looting’ $440 Million Before the Fed Crackdown

A civil lawsuit has been filed against the firm HDR Global Trading Limited, the parent company of the exchange Bitmex, alongside the three cofounders Arthur Hayes, Ben Delo, and Samuel Reed. Plaintiffs allege “the defendants’ Hayes, Delo, and Reed looted about $440,308,400 of proceeds of various nefarious activities.” The cryptocurrency derivatives platform Bitmex is facing […]

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BitMex has bled 45k Bitcoin since US gov charges, allowing other exchanges to benefit

Gemini, Binance, OKEx and Huobi appear to be the biggest gainers of the BitMex fallout.

Over 45,000 Bitcoin has been withdrawn from BitMex since the U.S. government levied charges against the exchange and its leadership. October 1 brought two devastating blows to BitMex. First, the CFTC and DOJ brought charges against the exchange. Shortly thereafter, its founders (including CEO Arthur Hayes), were indicted by the U.S. government. The market reacted to the news with a sharp decline across many of Blockchain’s biggest assets.

BitMex Bitcoin reserves. Source: Glassnode.

This isn’t the first time in recent months that BitMex has contributed to a downward turn. The exchange first began losing the trust of its participants following a blackout on Black Thursday which prevented users from trading or retrieving their assets. While users withdrew over 100,000 Bitcoin in the six months between that episode and these recent charges, the exodus of the past two days appears to be unprecedented in scale.

Bitmex Bitcoin inflows & outflows October 1-2, 2020. Source: Crystal Blockchain.

According to data from Crystal Blockchain, in less than 48 hours, the net outflows from the exchange have exceeded 45,000 Bitcoin. Meanwhile, Gemini and Binance appear to be the biggest beneficiaries of these outflows, trailed by OKEx and Huobi. Over 20,000 BTC have been transferred out of BitMex and into the latter four exchanges.

It is unclear whether BitMex will disappear into the abyss of time like many failed exchanges before it, or if the company will survive to trade another day. Lance Morginn, the CEO of Blockchain Intelligence Group and a former supervisory special agent at the Department of Homeland Security, told Cointelegraph that the most likely outcome would be monetary penalties and a promise on the part of BitMex’s executives not to engage in unlawful activities in the future.

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Defi Project Yam Finance Sees Over $500M Locked in 24 Hours, Devs Reveal Contract Bug

Defi Project Yam Finance Sees Over $500M Locked in 24 Hours, Devs Reveal Contract BugA new yield farming project is all the rage this week, as the Yam Finance project saw over $460 million dollars locked into the platform in 17 hours on Tuesday. On social media and crypto-focused forums, people have been very skeptical of the Yam Finance project as the code has not been audited. On Wednesday […]

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