Arthur Hayes and BitMEX Co-Founders to Receive Presidential Pardon

Former President Donald Trump has reportedly granted pardons to three co-founders of the cryptocurrency exchange BitMEX. Arthur Hayes, Benjamin Delo, and Samuel Reed were each convicted nearly three years ago for failing to implement adequate anti-money laundering measures at the exchange.

According to CNBC, the pardons were issued on Thursday, clearing the legal troubles of the three executives who had previously pleaded guilty to violating the Bank Secrecy Act. Prosecutors had accused them of running BitMEX as a platform that lacked sufficient Know Your Customer (KYC) verification protocols, a key requirement for preventing financial crimes.

Authorities highlighted that from 2014 to 2020, BitMEX allowed users to trade derivatives with just an email address, without properly verifying their identities. This lack of compliance made the platform vulnerable to money laundering and other illicit activities. U.S. Attorney Damien Williams had previously stated that BitMEX had become a tool for large-scale money laundering and sanctions evasion, which posed a risk to the integrity of the financial system.

Despite the legal battle, the three executives had already avoided prison sentences, receiving probation instead. However, they were required to pay substantial fines amounting to tens of millions of dollars. In a separate case last year, BitMEX itself admitted to violating the Bank Secrecy Act, further underscoring the regulatory scrutiny surrounding the platform.

With Trump’s decision, Hayes, Delo, and Reed are now cleared of their past convictions, adding another layer of controversy to the discussion around financial regulation and presidential pardon powers.