Bitcoin billionaire Arthur Hayes, the Ex-BitMEX CEO, is still on the run from the U.S. government

Bitcoin billionaire Arthur Hayes, the Ex-BitMEX CEO, is still on the run from the U.S. government

BUSINESS | Mar 01, 2021 | WOZINGA NEWS

Bitcoin billionaire Arthur Hayes, the Ex-BitMEX CEO, is still on the run from the U.S. government

  • Arthur Hayes (BitMEX co-founder) resurfaces again after months of silence.
  • The company’s former CEO is allegedly in Singapore. 

By Marielle Petere Wozinga Journalist

Bitcoin billionaire Arthur Hayes is the Ex-BitMEX CEO.

Arthur Hayes (BitMEX co-founder, and the company’s former CEO) resurfaces again after months of silence. Yet, Hayes’ plan in returning to the United States to defend himself from DOJ and CFTC’s criminal and civil charges and other lawsuits from investors and customers remains an open-ended question. 

He tweeted on the 19th of February, “

“Black is back. My opening salvo for 2021 just dropped called Walkaway, I look forward to reengaging with everyone via fortnightly publications. It’s a #bitcoin bull market, if you mess with the bull you get the horns.

Hayes: Old days to success

Backed in October 2020, Hayes with his BitMEX co-founders vanished like a bubble after resigning from being BitMEX’s executives. No updates. No more social media buzz from them.    

Earlier from the turmoil, the founders of Bitcoin Mercantile Exchange (BitMEX) became billionaires. 

Focusing on Arthur Hayes again, he is a specialist in financial exchanges. For 5 years, he worked at Deutsche Bank then at Citibank as a derivatives trader. While basing in Asia, especially in Hong Kong and Singapore, he was a market maker on Exchange Traded Funds (ETFs).  

When he lost his job at Citibank in the mid-year of 2013, Arthur Hayes managed to purchase Bitcoin, despite the restrictions on the renminbi, and to withdraw his BTC outside China. Since that time, Bitcoin price in China was higher than in other countries; it ranged from 20%-40%, so he decided to sell it locally.

Then, he joined and ventured into crypto marketing with Benjamin Delo and Samuel Reed. Benjamin Delo is well-known as a philanthropist, a software developer, and an educated mathematician at Oxford University; Samuel Reed is an experienced programmer.

In 2014, they established BitMEX in Seychelles (as headquarters). It is a cryptocurrency derivatives exchange. The company managed to gather investors and customers in the U.S.A. It was the spark of BitMEX success in the crypto market.

BitMEX: The devastation

However, on October 1, 2020, the company’s devastation came; the U.S. DOJ and CFTC charged BitMEX founders and Gregory Dwyer (the first BitMEX employee and became the head of business development) for violating the federal BSA (Bank Secrecy Act) – AML (Anti-Money Laundering). 

Immediately, the former BitMEX CTO Samuel Reed was arrested. Yet, his $5 million bail bond was approved on October 3. But, it was emphasized that he would be arrested without bail if he fails to appear in court. Still, his freedom to travel outside the country is prohibited. 

It was explained by the authorities that despite the company’s years of operating in the U.S.A. BitMEX did not comply with the customer identification program – Know Your Customer program (KYC). 

It was revealed that BitMEX did not collect the minimum requirements in verifying the customer’s identity and user’s location; also, it allowed to open an account with an unknown email. 

As the regulation states, this customer identification program is addressed not only for banks, savings associations, and credit unions; but also, it is for non-Federally regulated banks. This helps the U.S. government to combat money laundering activities and the funding of terrorism. 

BitMEX: New supervision

Under the supervision of BitMEX’s new Chief Executive Officer, Alexander Höptner. the government’s mandatory in verifying the customer’s identity has been accelerated on December 4, 2020. Earlier than its deadline, on January 7, BitMEX’s well-built KYC has been fully implemented. 

Up to this time, the accusations against Arthur Hayes and other BitMEX co-founders remain. According to an article published by Vanity Fair last February 4,  Arthur Hayes is allegedly in Singapore. 

Despite where he is, will he face the U.S. authorities to prove his freedom from guilt? Is this the turning point of his comeback? Or, will he remain hiding and endure its consequence, if there is?

Do you agree that Arthur Hayes is currently hiding in Singapore?

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