Samuel Reed of Massachusetts, a co-founder of the offshore cryptocurrency derivatives exchange BitMEX pled guilty to violating the Bank Secrecy Act in failing to implement an anti-money laundering program at the company. BitMex served thousands of U.S. customers despite its assertions to the contrary. According to court documents, Reed had been notified that BitMEX was being used to launder the proceeds of a cryptocurrency hack. No one filed a suspicious activity report. In August 2021, BitMEX agreed to pay up to $100 million to settle separate charges for unlawfully accepting customer funds to trade cryptocurrency when it was not registered to do so, as well as failure to conduct customer due diligence.
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