On March 28, 2025, U.S. President Donald Trump pardoned three co-founders of the cryptocurrency exchange BitMEX—Arthur Hayes, Benjamin Delo, and Samuel Reed.
On March 28, 2025, U.S. President Donald Trump pardoned three co-founders of the cryptocurrency exchange BitMEX—Arthur Hayes, Benjamin Delo, and Samuel Reed—who had previously pleaded guilty to violations of the Bank Secrecy Act. These violations involved failing to implement Anti-Money Laundering (AML) programs at BitMEX, which led to accusations that the exchange was being used for money laundering. The BitMEX founders’ actions were scrutinized by U.S. authorities, who then charged them with operating without proper Know Your Customer (KYC) procedures.
In 2022, Hayes, Delo, and Reed agreed to pay a combined $30 million in penalties as part of a settlement with the U.S. Commodity Futures Trading Commission (CFTC). Additionally, BitMEX, the parent company of the exchange, was fined $100 million in January 2025 for violations that took place between 2015 and 2020. This fine came after a protracted legal battle involving the exchange’s failure to comply with U.S. financial regulations.
The decision to pardon the BitMEX co-founders follows a series of controversial pardons granted by President Trump, including his previous clemency for Silk Road founder Ross Ulbricht. The timing of the pardons raised eyebrows, as Hayes, Delo, and Reed had already received sentences that included home arrest and probation. However, the pardon effectively nullifies these penalties, allowing the co-founders to move forward without the burden of further legal consequences.
Hayes expressed his gratitude on social media after the news broke, thanking the President for the clemency. The move to pardon the BitMEX co-founders also adds to the growing list of legal and regulatory challenges facing the cryptocurrency industry. BitMEX’s legal troubles stemmed from allegations that the exchange allowed U.S. customers to trade without verifying their identities. Additionally, the company was accused of altering customer information to conceal the location of its U.S. clients, which led to further investigations by U.S. authorities.
In addition to the legal battles in the U.S., BitMEX has been working on addressing its reputation and regulatory compliance issues. Earlier this year, reports emerged that the exchange was seeking a potential buyer, which may have influenced the timing of the pardon. The exchange has also faced ongoing scrutiny for its role in the broader cryptocurrency market, which continues to navigate complex regulatory environments in the U.S. and abroad.
Trump’s actions come as his administration has increasingly focused on crypto-related policies, with figures like Hester Peirce, an advocate for crypto-friendly regulation, rising to prominence within his administration. The pardons for Hayes, Delo, and Reed reflect the growing intersection between cryptocurrency and U.S. politics.
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