- Trump gives full pardon to BitMEX founders after guilty plea in Bank Secrecy Act violation case.
- SEC drops token probe as crypto regulation begins to shift under new leadership.
- The BitMEX team paid fines and served probation before receiving full and unconditional pardon.
President Donald Trump has granted full pardons to BitMEX co-founders Arthur Hayes, Samuel Reed, and Benjamin Delo. The pardon also covers Greg Dwyer, the company’s first employee, and BitMEX’s parent company, HDR Global Trading. The decision was signed and confirmed by the White House on Thursday.
BitMEX Case and Sentencing
In 2020, the Department of Justice charged the four men for violating the Bank Secrecy Act. Authorities said BitMEX allowed anonymous trading without verifying user identities. They claimed this violated U.S. financial regulations. The exchange promoted services to U.S. users without following required checks.
All four individuals pleaded guilty to the charges. Hayes received two years of probation while Delo got 30 months of probation. Reed was sentenced to 18 months, and Dwyer received 12 months of probation. The group also paid $30 million in fines. BitMEX itself pleaded guilty in 2024 to the same charges. Regulators said the company relied only on email verification, which was not enough under the law.
Crypto Regulation Sees Shift
The pardons follow Trump’s earlier decision to pardon Ross Ulbricht, the founder of Silk Road. Both actions suggest a different approach toward crypto-related offenses. These decisions may reflect a change in how the government handles digital asset cases.
Regulators also seem to be taking a softer stance. The SEC recently dropped charges against Hailey Welch. She was linked to the $HAWK token, which had been under investigation. After months of review, the agency cleared her of any wrongdoing. This marks a change from the enforcement-heavy actions seen in past years.
New Direction at the SEC
The nomination of Paul Atkins to lead the SEC signals further change. Atkins has promised clearer rules for the crypto industry. He wants to focus on guidance instead of strict enforcement. His confirmation hearing confirmed this approach.
However, some lawmakers raised concerns about his personal crypto holdings. Reports say he holds nearly $6 million in digital assets. Critics worry this could affect his decisions. Senator Elizabeth Warren is among those calling for greater oversight.
The pardon also included HDR Global Trading, BitMEX’s parent company. The White House has not explained the reasons behind the pardon. But the move removes all remaining legal barriers for the founders. It also highlights a possible shift in U.S. policy toward crypto enforcement.