A Manhattan federal judge slapped offshore crypto exchange BitMEX with a $100 million fine Wednesday, rejecting its suggestion that guilty pleas and $110 million of earlier penalties were sufficient punishment for a five-year, $1.3 billion course of evading U.S. financial controls.
The “significant but reasonable” penalty was imposed by U.S. District Judge John G. Koeltl after a 2.5-hour sentencing hearing. Judge Koeltl declined a request by the defendant, whose corporate name is HDR Global Trading Inc., to walk away with no probation, imposing a two-year probationary period.
After hearing counsel for BitMEX assert that the company and its chastened principals — who also were criminally prosecuted but avoided jail — will not violate U.S. law again, a skeptical Judge Koeltl said the “temptation” for offshore players to access the giant U.S. crypto market would remain.
Only after being criminally indicted by the Manhattan U.S. Attorney’s office did BitMEX acknowledge responsibility, Judge Koeltl observed.
