Trump’s Controversial Pardon of BitMEX Co-Founder Arthur Hayes and Former Executives

03/29/2025

Donald Trump Grants Full Pardon to BitMEX Co-Founders and Former Executive

U.S. President Donald Trump has granted a full pardon to three co-founders of the cryptocurrency exchange BitMEX and a former executive. The individuals pardoned by Trump include former CEO Arthur Hayes, Benjamin Delo, Samuel Reed, and former business development officer Gregory Dwyer. All four had previously pleaded guilty to violating the Bank Secrecy Act (BSA) and were sentenced for failing to establish adequate anti-money laundering (AML) and know your customer (KYC) mechanisms.

BitMEX Co-Founders Faced Severe Penalties

Arthur Hayes and others co-founded BitMEX in 2014, having previously pleaded guilty and accepted varying degrees of criminal penalties, including probation and fines. Additionally, they were collectively ordered to pay a civil fine of $30 million in a lawsuit brought by the Commodity Futures Trading Commission (CFTC). Gregory Dwyer, as business development officer, received an 18-month probation sentence and agreed to pay a $150,000 fine. Prosecutors accused BitMEX of nearly becoming a “money laundering platform,” claiming that the company’s exit from the U.S. market was merely superficial. Despite these accusations and the ensuing legal disputes, Trump’s pardon completely erased the criminal records of these four individuals.

BitMEX’s Compliance Violations Sparked Legal Storm

BitMEX’s legal troubles began when prosecutors revealed that the company knowingly failed to implement basic compliance measures for U.S. customers. Law enforcement agencies alleged that the exchange’s compliance policies were essentially non-existent and easily circumvented, allowing BitMEX to continue profiting from U.S. clients while disregarding American regulatory requirements. Ultimately, just three months before Trump’s pardon, BitMEX was fined $100 million. The Manhattan U.S. Attorney’s Office criticized BitMEX for prioritizing profits over compliance, highlighting that executives were aware of the vulnerabilities in their AML and KYC programs but chose to ignore them.

BitMEX Founders Respond Gratefully and Confidently to the Pardon

After the pardon announcement, Arthur Hayes tweeted a simple message: “Thank you POTUS,” using the common abbreviation for “President of the United States.” In contrast, Benjamin Delo’s response was more direct, referring to the pardon as a “position of ###.” Delo emphasized in his statement that BitMEX and its co-founders had been unfairly targeted by the U.S. Department of Justice. “This comprehensive and unconditional pardon from President Trump proves that our long-held position is correct: BitMEX, my co-founders, and I should never have been prosecuted under an outdated law,” Delo stated. He further alleged that BitMEX was “deliberately made a scapegoat” and claimed that the exchange was sacrificed for political purposes.

BitMEX and Its Leadership Previously Sentenced

Prior to the pardon, the sentences for various BitMEX executives varied:

Arthur Hayes: 6 months of home confinement, followed by 2 years of probation.
Benjamin Delo: 30 months of probation.
Samuel Reed: 18 months of probation.
Gregory Dwyer: 18 months of probation and a $150,000 fine.

Trump’s Pardons Extend to the Tech Sector

It is noteworthy that Trump’s recent pardons are not limited to the cryptocurrency sphere. Trevor Milton, the founder and former CEO of electric truck manufacturer Nikola, also received a pardon. Milton had previously been sentenced to 4 years for securities fraud but was granted freedom during the appeal process, and Trump’s pardon completely absolved him of his criminal charges. Trump has demonstrated a lenient approach towards prominent figures from the cryptocurrency and tech sectors, further highlighting his willingness to offer pardons to influential industry leaders.

BitMEX Founders Begin a New Chapter

For BitMEX and its leaders, this pardon signifies a fresh start after years of legal uncertainty. Delo expressed that he can finally shed the shackles of criminal accusations and focus on life and charitable endeavors. “Today, I have finally cleared my name, and the legal errors have been rectified,” Delo stated. “Although I have endured immense suffering over the past few years, I am glad to lift the burden of this unjust trial and restart my life.” As the dust settles, the cryptocurrency community remains divided over the pardon, with some praising Trump’s decision while others question what signal this sends regarding regulatory accountability in the cryptocurrency industry.

Risk Warning

Investing in cryptocurrencies involves high risks, and prices can be extremely volatile. You may lose your entire principal. Please assess risks carefully.