Benjamin Delo, a co-founder of cryptocurrency derivatives exchange BitMEX, was sentenced to 30 months probation for violating U.S. anti-money-laundering law
Mr. Delo, who was sentenced Wednesday in federal court in New York, has also paid a $10 million penalty as part of a deal with prosecutors and the U.S. Commodity Futures Trading Commission. HeWSJ | Risk and Compliance JournalSUBSCRIBE
The exchange grew explosively after its founding in 2014 to become one of the largest in the world. But according to prosecutors, BitMEX failed to adequately address a surge in U.S.-based customers who should have been more thoroughly screened. Mr. Delo was involved in a “criminal compliance failure,” but BitMEX wasn’t designed to circumvent U.S. law, said Patrick Smith, a defense lawyer for Mr. Delo. Mr. Delo had personally banned hundreds of users with a connection to the U.S., he said.