Trump Grants Pardons to BitMEX Co-Founder Arthur Hayes and Other Co-Founders

BREAKING: President Donald Trump has issued pardons to three co-founders of the globally recognized BitMEX exchange. The decision brings closure to a legal saga that saw former CEO Arthur Hayes, Benjamin Delo, and Samuel Reed entangled in charges tied to the Bank Secrecy Act.

This move, enacted on Thursday, March 27, 2025, highlights Trump’s willingness to intervene in high-profile cases. The pardons arrive just months after BitMEX itself faced a $100 million fine for failing to uphold anti-money-laundering and know-your-customer standards, spotlighting a broader debate about regulatory oversight in the crypto industry.

The trio had previously pleaded guilty to violating the Bank Secrecy Act by neglecting to implement sufficient anti-money-laundering and customer identification protocols at BitMEX. Their legal consequences included probation sentences, with Hayes receiving six months of home confinement followed by two years of probation, Delo facing 30 months of probation, and Reed sentenced to 18 months of probation.

Alongside these penalties, each co-founder agreed to pay a $10 million criminal fine, reflecting profits tied to their actions, while a Commodity Futures Trading Commission lawsuit resulted in an additional $30 million in civil penalties. Prosecutors had painted a stark picture, alleging BitMEX operated as a “money laundering platform” and that its supposed exit from the U.S. market was superficial, designed to evade accountability rather than comply with regulations.

A Controversial Pardon Sparks Debate

Benjamin Delo, BitMEX’s former chief operating officer and chief strategy officer, welcomed the pardon as a long-overdue correction.

In a statement, he described the U.S. Department of Justice’s pursuit of BitMEX and its founders as misguided, rooted in what he called an “obscure, antiquated law.” Delo argued that the exchange, a trailblazer in the crypto space since its founding in 2014, was unfairly targeted for political reasons, serving as a sacrificial example amid inconsistent regulatory messaging.

He expressed gratitude to Trump for the pardon, emphasizing that it lifts the weight of an “unfounded conviction” and allows him to move forward with his life and charitable endeavors. The sentiment reflects a broader narrative among the co-founders that their legal battles were disproportionate to their actions, a stance that has fueled discussions about the intersection of innovation and regulation.

The case against Hayes, Delo, and Reed hinged on accusations that they knowingly flouted U.S. requirements despite serving American customers. Prosecutors from the Manhattan U.S. Attorney’s Office asserted that BitMEX’s minimal entry barrier—requiring only an email address—enabled illicit activity, while internal policies to block U.S. users were superficial and easily bypassed. This prioritization of revenue over compliance, they argued, persisted at least through 2018, even as the executives were aware of their obligations. The pardons, however, shift the narrative, offering the co-founders a clean slate and raising questions about the future of enforcement in crypto.