Bermuda-based ex-director of business development at BitMEX Gregory Dwyer agreed to extradition to the United States to face trial.
In October 2020, the US Department of Justice indicted the exchange's co-founders Arthur Hayes, Ben Delo, Samuel Reid, and Dwyer for violating the Bank Secrecy Act.
The agency concluded that the defendants "did not deliberately create, implement or support an adequate anti-money laundering program, including a customer identification system, which is more commonly referred to as KYC."
Reed was arrested in the United States but was released on $ 5 million bail.
The UK-based Deal surrendered to US authorities in March 2021. Hayes flew from Singapore to Hawaii in April, having previously agreed on the terms of voluntary surrender. The court also released both on bail. For Hayes, the amount was $ 10 million, and for Delo, $ 20 million.
Dwyer's extradition request came to Bermuda in July. The Magistrates' Court ruled that he would be extradited if the decision was approved by the Governor of the British Overseas Territory Rena Lalji.
Judge Khamishi Tokunbo also extended the $ 20,000 bail for the defendant.
“My charge continues to work with the government to ensure a smooth process for his arrival in New York, and has every intention of defending himself against unfounded accusations,” said lawyer Jerome Lynch, representing Dwyer.
In parallel with the accusations from the Department of Justice, a civil lawsuit against the exchange and its affiliated companies was filed by the United States Futures Trading Commission (CFTC). Hayes, Reed, and Delo were also involved in the case.
The department accused the defendants of running an unregistered trading platform and violating the rules regarding the implementation of KYC / AML procedures.
In August, BitMEX settled a dispute with the CFTC, agreeing to pay a $ 100 million fine and undergo independent audits.