BitMEX operator hires compliance officer on criminal charges in US

The signing came after the BitMEX founders were accused of not preventing money laundering and illegally operating an unregistered trading platform in the United States.

BitMEX operator hires director of compliance amidst criminal charges in the US

The operator of the BitMEX cryptomime derivatives brokerage, the 100x Group, has hired an experienced money laundering prevention expert (AML, from „Anti-Money Laundering“), Malcolm Wright, as its compliance officer.

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In an announcement on October 12, the 100x emphasized Wright’s profile as the current Chair of the AML Advisory Board and Working Group on Global Digital Finance, and as a speaker covering the main topics including the Financial Action Task Force Recommendations for Virtual Asset Service Providers .

The 100X Group moved its leadership last week by removing BitMEX co-founders Arthur Hayes, Samuel Reed and Ben Delo from executive roles. Hayes, Reed and Delo were all charged in a civil suit by the U.S. Commodity Futures Trading Commission for operating an unregistered trading platform in the U.S. and for violating AML regulations.

The Department of Justice, in parallel, filed criminal charges against the co-founders and also against their colleague, Geoff Dwyer, who then took a leave of absence from his role as head of business development.

Without explicit reference to recent charges, the 100x Group officially said that „Malcolm’s appointment is a remarkable milestone for us as we move towards completion of our User Verification Program and further enhance our compliance function.

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Wright’s LinkedIn profile indicates that he spent almost two and a half years at Global Finance, in parallel with his duties as a member of the advisory board of London-based Commercial Passport KYC and as an associate member of the Royal United Services Institute, which contributes to policy debates on financial crimes. He is also the founder of Financial Crimes Compliance Consulting and a former compliance officer for Diginex and EQUOS.

The 100x Group faces a major challenge in rehabilitating the brokerage house’s image. Commentators say the charges against the BitMEX team have cast a shadow over the industry at large and could trigger a regulatory reaction against the crypto space.