Arthur Hayes, founder and the former chief executive of crypto derivatives exchange BitMEX, who is wanted by the U.S. government, could surrender to the US authorities in Hawaii next month.
Hayes is among founders and executives of BitMEX who were charged in October with “willfully failing to establish, implement, and maintain an adequate anti-money laundering (‘AML’) program” for BitMEX. Others who were charged include BitMEX co-owner Ben Delo, as well as Head of Business Development Greg Dwyer.
According to The Block’s report citing court documents, Hayes is now residing in Singapore and in discussions with the U.S. government about surrendering and appearing in court.
Hayes proposed to surrender on April 6, 2021, according to the filing, with a bail package under discussion.
“The idea would be that he would appear initially in Hawaii, then appear before your Honor remotely, and then he would continue to reside abroad with travel to the United States for appearances as needed. And of course, if there is a trial, that he would appear within the United States for that trial in New York,” Assistant U.S. Attorney Jessica Greenwood told the judge per the transcript.
BitMEX: Leading Exchange for Crypto Derivatives
On the other hand, Greenwood also stated that another BitMEX co-owner, Ben Delo, is residing in the United Kingdom, and is planning to surrender in New York. Regarding Dwyer, who is currently in Bermuda, Greenwood said federal prosecutors have begun extradition proceedings.
Last month, Hayes published a blog post calling for a boycott of legacy investment and trading platforms following the GameStop drama. He also promised future blog posts on the subject. “As the traditional financial game is adjudicated and participants feel raw with the surfeit of perceived inequalities, I will in plain language demonstrate why that behaviour can’t or wouldn’t persist in the Crypto Capital Markets.”
Since the case was made public, BitMEX has distanced itself from Hayes. In December, 100x Group, the parent firm to BitMEX, appointed Alexander Höptner as the new CEO.
Despite its founders’ legal troubles, BitMEX remains one of the world’s most popular exchanges for crypto derivatives. Last month, BitMEX recorded over $127 billion in volume, twice as much as US-based exchange Kraken, only slightly less than Coinbase Pro, according to data from Nomics.