[jluxenberg]

I think the indictment is straightforward: BitMEX provided banking services to US customers without implementing Know Your Customer and other required anti-money-laundering safeguards.

Being a "fintech" product doesn't exempt an operator from the law: KYC is the law on the US.

I'm surprised there haven't been more indictments, since I'm sure other exchanges have operated fast+loose w.r.t. AML and KYC

[jstanley]

I don't know what you think BitMEX is, but I'm pretty sure they never offered banking services.

[jkhdigital]

The law covers commodity futures trading services as well, which is what the indictment cites as justification for holding them to the terms of the Banking Secrecy Act.

The laws around KYC and AML are written for the traditional banking system, and are a bit nonsensical when applied to crypto. BitMEX deals only in Bitcoin, so it begs the question of how one could “launder” anything through it.

[smabie]

bitmex allowed people to trade btc settled quanto derivatives contracts. That's it.