May 20-2: After BitMEX Arthur Hayes sentenced to six months home confinement then international travel for not having an anti-money laundering program, stand-up in front of @SDNYLIVE courthouse,

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VLOG: After BitMEX Arthur Hayes sentenced to six months home confinement then international travel for not having an anti-money laundering program, stand-up in front of

@SDNYLIVE

courthouse:

BitMEX Arthur Hayes Gets 6 Months At Home Then Travel In 2 Years Probation For No AML By Matthew Russell Lee, Patreon BBC - Guardian UK - Honduras - ESPN SDNY COURTHOUSE, May 20 – Four executives of the Bitcoin Mercantile Exchange or BitMEX were criminal defendants for violations of the Bank Secrecy Act. On February 24, with no notice, a guilty plea. Back on October 13, 2021 U.S. District Court for the Southern District of New York Judge John G. Koeltlt held a proceeding. Inner City Press covered it, below. On May 20, after Hayes pleaded guilty, he was sentenced - to two years probation, the first six months of which are home confinement with location monitoring. Inner City Press live tweeted it here: OK - sentencing of BitMEX's Arthur Hayes begins @SDNYLIVE . He wants probation; US wants more than a year. Inner City Press has been covering the case (& much else crypto) and, after scoping out Hayes' crowd, will live tweet Judge Koeltl: What's the nature of the fine? Hayes' lawyer: We've paid $10 million to the CFPB. So Paragraph 62 should include that. Assistant US Attorney: That's correct, your Honor. Hayes' lawyer Benjamin: Probation rejected some of our suggestions. But we're OK with it - no objections at this time. Judge Koeltl: OK, I'll listen to your argument. Hayes' lawyer: It is a privilege for us to serve Arthur Hayes. His mother from Buffalo is here. Hayes' lawyer: The plea agreement is for 6 to 12 months. We are asking for probation with no home confinement and for Mr. Hayes to return to his home in Asia. We disagree with the government. Mr. Hayes has already suffered collateral consequences. Hayes' lawyer: The government agreed to six to twelve months - but now they are asking for more. They argue that the law is too lenient, in applying the Bank Secrecy Act to crypto-currency... There was a lack of regulatory guidance. Judge Koeltl: The defendant pleaded guilty to willfully having violated the Bank Secrecy Act. He knew he was serving US residents. Go ahead. Hayes' lawyer: The point is, the violation is not having an AML program. Mr. Hayes is a charismatic leader. Hayes' lawyer: Let me tell you about Mr. Hayes' love for his mother, some of it cannot be spoken of here. Mr. Hayes went to China and feel in love with Asia. He worked at Deutsche Bank and Citi then into crypto currency. He was a pioneer. Hayes' lawyer: We have a letter from the Jackie Robinson Foundation. Let me read from it: "Arthur is open minded." The government seeks to belittle this. Mr. Hayes accepts responsibility - he wishes he had had better controls and keep US persons off the platform Hayes's lawyer: He left Singapore to turn himself in. He lost his immigration status there. He's suffered significant reduction in the value of the BitMEX business. It was a classic start-up. He slept on a couch in Hong Kong. He focused on retail traders in China Hayes' lawyer: He moved to Shanghai and the business caught fire. He got a lawyer from BNP Paribas. He hired Sullivan & Cromwell and PriceWaterhouseCoopers on whether the company should have a KYC program. Hayes' lawyer: Yes, customers could lie to BitMEX and use a VPN to conceal where they were located. But we blocked many - we have the customer support tickets. The controls were not a meaningless scam. Hayes' lawyer: By London, the CTFC investigation was in the early stage. And BitMEX had no idea of the criminal investigation. Still BitMEX hired a former FBI agent. Judge Koeltl: Let me remind people in the gallery to keep their masks up. COVID number are up Hayes' lawyer: Anti-money laundering programs to do not prevent money laundering. This is not Silk Road. This is very different. Mr. Hayes wrote thoughtfu

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