BitMEX Reveals Its Total BTC Reserves, Says Others Should To Do The Same
BitMEX, a top crypto derivatives exchange, reveals its total Bitcoin (BTC) reserve balance and suggests that other exchanges would provide the same information to the public.
BitMEX exchange holds 110,090 Bitcoin, worth $5.11 billion at time of writing, according to a blog post from the company.
The firm also provided ways anyone to verify liabilities and the company’s reserves against the blockchain, to remove any doubt.
[1/4] Proof of Reserves – BitMEX has published open source tools allowing anyone to verify the company's reserves against the blockchain, by running Bitcoin Core See BitMEX’s reserves reconciled against the blockchain at height 693,062 (28 July 2021)https://t.co/tZxpZa0W58
According to the CFTC, a settlement was reached with five entities that were charged with operating the BitMEX crypto derivatives platform.
“The order requires the BitMEX entities to pay a $100 million civil monetary penalty, and provides that up to $50 million of the penalty may be offset by payments the BitMEX entities make or are credited pursuant to a Consent to Assessment of Civil Monetary Penalty entered by the Financial Crimes Enforcement Network.”
In October of 2020, the CFTC accused BitMEX founders Arthur Hayes, Benjamin Delo and Samuel Reed – along with the platform’s other operating entities – of partially operating from the US and serving US customers without proper approval.
The regulators came after BitMEX due to failing to maintain adequate Anti-Money Laundering safeguards and report 588 instances of suspicious activity to the government agency for more than six years. The regulator alleged that the exchange conducted at least $209 million in transactions with “known darknet markets or unregistered money services businesses providing mixing services.”
The CEO Arthur Hayes and other executives at the firm are not out of the woods yet. These individuals are still likely to face charges on alleged violations of the Bank Secrecy Act.
