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BitMEX hires new Chief Compliance Officer after money laundry charges

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BitMEX Exchange has announced the appointment of Malcolm Wright as the new Chief Compliance Officer. This is after the firm’s heated legal battle with the US Commodity Futures Trading Commission (CFTC).

Malcolm Wright according to a statement released by the firm would lead BitMEX compliance effort globally. The new CCO would also assist the firm to complete its User Verification Programme and further enhance its compliance function. The firm was found wanting in this regard leading to their legal battle with CFTC.

BitMEX, CFTC mess

CFTC on Thursday, October 1 accused BitMEX of laundering money and operating illegally in the US. The exchange executives were accused of violating the Bank Secrecy Act and operating an unregistered trading platform. There were accusations of purposely failing to establish, implement, and maintain an adequate anti-money laundering (AML) program.

CFTC also slammed the exchange firm with not maintaining an adequate anti-money laundering program (AML). This includes not having a proper know your customer (KYC) customer identification program. It brings them in violation of the Bank Secrecy Act (BSA).

All these charges lead to a shakeup in the company as executives of the firms were dismissed one week after CFTC pressed charges against them. BitMEX CEO Arthur Hayes was sacked as CEO with immediate effect. Samuel Reed, BitMEX CTO, also got fired from being the firm’s CTO with immediate effect.

The founder of BitMEX parent company, Ben Delo, was removed from being an executive amidst other executive restructuring at the firm.

It leads to the appointment of Malcolm Wright as Chief Compliance Officer. Primarily he is charged with ensuring the firm complies with all AML, KYC regulations. This is to avoid any future allegations by the CFCT.

Why Malcolm Wright is best fit to be CCO

BitMEX new CCO appears to be a fit for his new role after a 30-year experience in compliance and anti-money laundering (AML) policies. Also, he sits on multiple international committees and chairs the Advisory Council and AML Working Group at another cryptocurrency firm, Global Digital Finance.

Upon his appointment with BitMEX, he said that compliance is non-negotiable, and a prerequisite for exchanges to be embraced by regulators and institutional investors alike. His vision is to play a lead role in shaping how the industry collaborates with regulators to ensure everyone can safely avail of digital markets.

The post BitMEX hires new Chief Compliance Officer after money laundry charges appeared first on BlocDesk.



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