CFTC and DOJ charge BitMEX over unregistered derivatives platform and AML failures

On October 1, 2020, the CFTC filed civil charges and the DOJ unsealed criminal charges against BitMEX and its co-founders Arthur Hayes, Ben Delo, and Samuel Reed for running an unregistered derivatives platform that solicited US customers while ignoring Bank Secrecy Act and KYC obligations. It turned out that "we're an offshore exchange in the Seychelles" was not, in fact, a complete compliance program. The case became the template for how US regulators pursue offshore venues that serve American traders, ending in a combined $130 million in penalties and guilty pleas.