Arthur Hayes Resign as BitMEX CEO in Wake of U.S. Government Criminal Charges

October 11, 2020 2:07 PM UTC

Crypto derivatives exchange BitMEX has announced to reshuffle its top executive management amid legal charges filed by United States regulators. On October 8, 100x Group, the parent company of BitMEX, announced that Arthur Hayes, Samuel Reed, and Ben Delo. Greg Dwyer will no longer hold executive roles at the firm. The accused executives will leave their role as head of business development.

To replace Hayes, Vivien Khoo, COO of 100x Group, will work as a new interim CEO of BitMEX. Further, BitMEX Commercial Director Ben Radclyffe will have more obligations regarding customer relationships and oversight of financial items.

While commenting on the top leadership replacement, 100x Group Chairman David Wong said:

“These changes to our executive leadership mean we can focus on our core business of offering superior trading opportunities for all our clients through the BitMEX platform, whilst maintaining the highest standards of corporate governance.”

US Regulator Charged BitMEX for Violating Rules

Commodities and Futures Trading Commission (CFTC) and the Department of Justice (DOJ) filed a legal lawsuit against crypto derivatives exchange BitMEX for illegal crypto trading and disrupting money-laundering rules. Allegedly violating the Bank Secrecy Act, the DOJ filed a criminal indictment against BitMEX top leadership.

In response to lawsuits, BitMEX said:

“We strongly disagree with the U.S. government’s heavy-handed decision to bring these charges, and intend to defend the allegations vigorously. From our early days as a start-up, we have always sought to comply with applicable U.S. laws, as those laws were understood at the time and based on available guidance.”

As an outcome of the charges, BitMEX has witnessed extensive withdrawals in recent days. As per the report, users have withdrawn over 32,000 BTC worth $339 million at the time of reporting. However, the exchange announced that all operations are in perfect condition and the user’s funds are safe. David Wong officially said that the leadership “are well-placed to continue the growth and development of the 100x Group, including completion of the BitMEX User Verification Programme.” 

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