Trump Pardons BitMEX Co-Founders Amid Crypto Industry Accountability
Former U.S. President Donald Trump has officially pardoned BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed. The three executives had pleaded guilty previously to federal charges of anti-money laundering (AML) offenses and regulatory violations, CNBC says.
The Department of Justice accused BitMEX of operating with insufficient AML controls, essentially labeling the platform as a “money laundering platform.” Prosecutors alleged the exchange allowed U.S. users to trade crypto derivatives without subjecting them to Know Your Customer (KYC) procedures. Samuel Reed pleaded guilty in 2022 to breaking the Bank Secrecy Act and will be required to pay a $10 million fine under his plea agreement.
Regulatory Fallout and Financial Penalties
BitMEX’s troubles didn’t end there with the individual convictions. In early 2025, a federal judge imposed a $100 million fine on HDR Global Trading Limited, the parent company of BitMEX, for violating U.S. banking laws. The firm was also sentenced to two years of unsupervised probation.
While BitMEX publicly declared that it had exited the U.S. market, the authorities indicated that the move was not genuine and did not help to prevent American users from accessing its platform illegally.
BitMEX Seeks Exit Strategy
Under increasing regulatory and legal scrutiny, BitMEX started looking to sell the company. In late 2024, the exchange hired Broadhaven Capital Partners to explore strategic options. The action was in line with broader consolidation within the crypto derivatives space, as increased regulatory scrutiny has spurred mergers and acquisitions.
Trump’s pardon on the same day that Trevor Milton, the former chief executive of electric truck manufacturer Nikola, also announced he’d been granted clemency. Milton had pleaded guilty to charges of securities fraud and received four years but has been on appeal ever since.
The twin pardons underscore Trump’s ongoing fascination with prestige financial and tech-related cases as he builds political momentum, showing his willingness to intervene in white-hot white-collar prosecutions.
