Former President Donald Trump has granted pardons to BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed.
The trio had previously confessed to federal offenses associated with money laundering and regulatory infractions, as reported.
The executives faced conviction for not implementing adequate anti-money laundering protocols at BitMEX, which prosecutors branded as a “money laundering platform.”
Reed acknowledged his breach of the Bank Secrecy Act in 2022 and consented to pay a $10 million fine. Authorities contended that BitMEX’s assertion of withdrawing from the U.S. market was a “sham.”
BitMEX’s banking troubles
In January, BitMEX was subjected to a $100 million penalty for transgressing U.S. banking regulations.
A federal judge mandated HDR Global Trading Limited, the parent company of BitMEX, to pay the fine alongside a two-year unsupervised probation period.
Earlier this year, BitMEX explored potential buyers and enlisted Broadhaven Capital Partners to assist with the sale. Reports suggest that the investment bank was engaged in late 2024 to help facilitate the transaction, which came amidst a rise in mergers and acquisitions within the crypto derivatives industry.
Trump issued the pardons on Thursday, coinciding with Trevor Milton, the former CEO of Nikola, revealing that he had received clemency for his securities fraud conviction.
Milton had been sentenced to four years in prison but remained at liberty while his appeal was in process.