The Strategist

BitMex cryptocurrency exchange to pay $100M fine to the U.S.

08/12/2021 - 07:51

Cryptocurrency exchange BitMex, one of the world's largest crypto derivatives trading platforms, said it will pay a $100 million fine to U.S. regulators.

Marco Verch
Marco Verch
This is how the company will settle charges brought by the Commodity Futures Trading Commission (CFTC) and the U.S. Financial Crimes Enforcement Agency (FinCEN). The reason for the large-scale proceedings was the illegal use of BitMex's platform to trade cryptocurrency. 

In its October 2020 complaint, the CFTC alleged that BitMex and three of its co-founders had illegally accepted orders and funds from U.S. investors to trade cryptocurrencies for at least six years without regulatory approval.

Recently, authorities in several countries have sought to increase oversight of the fast-growing cryptocurrency space. BitMex isn't the only exchange that's been getting a lot of attention lately. The day before, the U.S. Securities and Exchange Commission imposed a $10 million fine on cryptocurrency firm Poloniex for operating on an unregistered exchange. 

In May, the Department of Justice and the U.S. Internal Revenue Service launched a joint investigation against Binance on suspicion of violating laws on disclosure of information in the exchange of cryptocurrencies.