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Arthur Hayes, the co-founder and former CEO of crypto derivatives trading platform BitMEX, has filed a request for leniency in his sentencing, which is scheduled for later this month.

Hayes Asks for No Jail Time

According to a Bloomberg report today, Hayes’ legal representatives had filed a request for probation with a Manhattan federal judge, with no home detention or community confinement. This was after the BitMEX founder signed a plea deal that would entail a reduced prison sentence of six-to-12 months under federal guidelines.

In the 65-page submission, which contained photographs and letters from supporters, including his mother, Hayes asked for no jail time and permission to live and travel abroad.

The lawyers pointed out that the United States vs. Hayes case could act as a precedent for the U.S. government to understand better how to prosecute subsequent financial crimes conducted on crypto trading platforms around the world. They also noted that the former BitMEX CEO would likely not repeat the same offense.

“This is a landmark case that has already had an extraordinary and well-publicized impact on Mr. Hayes’s personal life and on the BitMEX business that he co-founded,” the letter reads.

Per the report, the government hasn’t filed a sentencing recommendation yet.

U.S. Vs. Hayes Court Case

BitMEX and its co-founders, Arthur Hayes, Benjamin Delo, and Samuel Reed, were accused of violating the Bank Secrecy Act (BSA) and failing to establish, implement, and maintain an anti-money laundering (AML) program.

The authorities stated that their failure to establish the know-your-customer (KYC) and AML services had in effect made BitMEX “a money-laundering platform.”

Following the lawsuits, the co-founders stepped down from their respective roles in the company, and BitMEX agreed to pay $100 million in settlement to the U.S. Commodity Futures Trading Commission (CFTC) and Financial Crimes Enforcement Network (FinCEN).

Earlier in February, Hayes and Delo pleaded guilty to the charges brought against them and agreed to pay a fine of $10 million each, while Reed pleaded guilty to similar charges in March.

Despite the lawsuit, Hayes continues to make input on recent developments in the crypto market. Earlier this week, he shared a comprehensive analysis of how Bitcoin can get to $1 million in eight years.

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