BitMEX Co-founder Arrested! U.S. Commodity Futures Trading Commission Accuses Him of Multiple Charges, Bitcoin Plunges

On October 2nd, Taiwan time, the U.S. Commodity Futures Trading Commission (CFTC) issued a statement accusing BitMEX, once the world's largest Bitcoin futures exchange, of illegally operating without registration and violating anti-money laundering laws. According to media outlet The Block, co-founder Samuel Reed has been arrested on criminal charges, while CEO Arthur Hayes, another co-founder Ben Delo, and Head of Business Development Greg Dwyer are also facing the same accusations. As of the time of reporting, BitMEX is still able to process withdrawals normally.

CFTC Accusations: Unregistered, Anti-Money Laundering Charges

The Commodity Futures Trading Commission (CFTC) has filed charges against five entities and three individuals associated with BitMEX in a New York court, including HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited, and HDR Global Services Bermuda Limited BitMEX. The individuals named are co-founders Samuel Reed and Ben Delo, as well as CEO Arthur Hayes.

According to the official accusations, BitMEX operated as an unregistered trading platform, violated multiple CFTC regulations, and failed to comply with anti-money laundering procedures. As BitMEX has handled over $11 billion worth of Bitcoin and collected more than $1 billion in fees, with a majority of its users being U.S. consumers, the charges have been brought forward.

Furthermore, the accusations also involve criminal charges, with co-founders Samuel Reed and Ben Delo, CEO Arthur Hayes, and head of business development Greg Dwyer facing accusations of violating the Bank Secrecy Act. According to reports, Samuel Reed has been arrested.

Bitcoin Plunges, BitMEX Responds: Vows to Fight Accusations

Following the news, Bitcoin immediately dropped from $10,800 to $10,400. As of 3 a.m. on October 2nd, BitMEX had not made any official announcements, and CEO Arthur Hayes had not commented. In an interview with The Block, a BitMEX spokesperson stated: "We strongly disagree with the U.S. government's heavy-handed decision to bring these charges, and we will defend ourselves vigorously. We have always sought to comply with all applicable U.S. laws since our inception, as these are based on our understanding and interpretation of the law at the time." At that time, community feedback indicated that BitMEX withdrawals were still functioning normally.

Shortly before 4 a.m. on October 2nd, BitMEX released an official statement confirming that the platform and withdrawals were operating as usual.