Trump granted a pardon to the founder of BitMEX, a cryptocurrency trading platform.
In a contentious move, US President Donald Trump pardoned the four founders of BitMEX, a Bitcoin exchange, without providing reasons. The pardoned individuals include Arthur Hayes, Benjamin Delo, Samuel Reed, and Gregory Dwyer, who pleaded guilty to violating the Bank Secrecy Act in 2022.
The Justice Department had previously fined BitMEX a staggering $100 million in January for violating anti-money laundering regulations. The exchange knowingly allowed US citizens to register using VPNs or the Tor network and advised some to state a different nationality to bypass Know Your Customer (KYC) measures.
The pardon has raised questions about the potential influence of campaign donations on pardon decisions. Trevor Milton, the CEO of Nikola, was also pardoned by Trump despite being convicted of securities fraud. Milton is noted for his $1.8 million campaign donation to Trump, a connection that has sparked debate.
Arthur Hayes, one of the BitMEX co-founders, has been connected to Bitcoin transactions amid his public statements about Bitcoin. However, no direct evidence ties a specific Bitcoin transaction to a cash donation to Trump.
Benjamin Delo, another co-founder, commented that the Justice Department had "wrongfully targeted" BitMEX and its co-founders. Delo also stated that Trump's pardon "reinforces the position" taken by the BitMEX founders.
The pardon of Trevor Milton and the BitMEX founders, in the context of their campaign donations, raises questions about the potential influence of campaign donations on pardon decisions. Pardons for violations of anti-money laundering regulations are rare in the justice system, making these pardons even more noteworthy.
Trump's actions could be seen as an attempt to monetize his position as US President, as indicated by his reported demand for money from entrepreneurs and his pardon of Trevor Milton. Cryptocurrency, despite being unpleasant, could potentially aid Trump in his alleged attempts to monetize his position.
Arthur Hayes was sentenced to two years' probation for his role in the violations. The New York prosecutor accused BitMEX of intentionally violating the Bank Secrecy Act by not taking sufficient measures against money laundering and allowing proceeds of hacks on the exchange to be laundered.
BitMEX allows betting on the rise or fall of cryptocurrencies with a high leverage, up to 100 times, and only accepts Bitcoins as collateral. The exchange's practices have been under scrutiny due to concerns about money laundering and the potential for fraud.
Trump's actions may contribute to him being remembered in US history as a kleptocrat, a term used to describe a political leader who uses their position for personal gain. The ongoing investigations and debates surrounding these pardons are likely to continue in the coming months.
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