BitMEX Rejigs Leadership On The Back Of Regulatory Issues

Bitcoin Mercantile Exchange or BitMEX, announced leadership changes at 100x Group, the holding group for HDR Global Trading Ltd., owner and operator of the BitMEX platform. The move comes close on the heels of recent legal filings and regulatory crackdown against the crypto derivatives exchange.

“These changes to our executive leadership mean we can focus on our core business of offering superior trading opportunities for all our clients through the BitMEX platform, whilst maintaining the highest standards of corporate governance,” said David Wong, Chairman of 100x Group.

The co-founders, CEO Arthur Hayes and CTO Samuel Reed, have withdrawn from all executive management responsibilities with immediate effect. Another Co-Founder Ben Delo will also not hold executive positions in the 100x Group, along with Hayes and Reed.

The company named Chief Operating Officer Vivien Khoo as the Interim CEO, assuming additional operational responsibilities. Khoo joined the company in March 2019 after moving from her role as Managing Director, Asia Pacific Compliance at Goldman Sachs.

The company also enhanced the role of Commercial Director Ben Radclyffe, who will now be responsible for client relationship handling and oversight of financial products. Radclyffe joined the company in March 2020, with a 20-year background in finance and trading technology.

Additionally, Greg Dwyer will take a leave of absence from his role as Head of Business Development.

Meanwhile, the company said the senior leaders within its technology team will continue the day-to-day management of the BitMEX platform, including ongoing efforts to enhance the performance of the platform.

Hayes, Reed and Delo operate BitMEX’s platform through a maze of corporate entities. These entities are HDR Global Trading Ltd., 100x Holding Ltd., ABS Global Trading Ltd., Shine Effort Inc Ltd., and HDR Global Services (Bermuda) Ltd. (BitMEX).

Hayes, Reed, Delo and Dwyer are facing jail term of five years after being indicted by the U.S. Attorney for the District of New York last week on federal charges of violating the Bank Secrecy Act and conspiracy to violate the Bank Secrecy Act. Reed was immediately arrested, while the other three are absconding.

Simultaneously, Hayes, Reed, Delo and the five related entities have also been charged by the U.S. Commodity Futures Trading Commission (CFTC) for illegally operating an unregistered trading platform and for violating the anti-money laundering regulations.

In response to both the actions, BitMEX had said in a statement, “We strongly disagree with the U.S. government’s heavy-handed decision to bring these charges, and intend to defend the allegations vigorously. From our early days as a start-up, we have always sought to comply with applicable U.S. laws, as those laws were understood at the time and based on available guidance.”

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