In a bid to strengthen is Anti Money Laundering requirements, popular cryptocurrency exchange BitMex, which has been involved in a series of controversies in 2020, has joined hands with Eventus Systems, a software and compliance firm.
According to the announcement, the partnership will allow BitMex to “bolster” its Anti Money Laundering (AML) and trade surveillance monitoring. The firm said in the announcement:
“Through integrating the Eventus Validus technology into our existing trade surveillance and AML processes, we will be able to more efficiently screen out bad actors and increase proactive monitoring for unauthorized trading activity on the BitMEX platform.”
Malcolm Wright, Chief compliance officer at 100x Group, the company behind BitMex, believes that Eventus would support the exchange’s “critical” trade surveillance and AML functions, which would in turn help the platform further strengthen its crypto-asset compliance capabilities.
“Eventus has extensive expertise and experience not only with digital asset exchanges but also within the traditional financial sector. Choosing Eventus is part of our ongoing commitment to achieve this vision as we execute signature initiatives like our User Verification Programme.”
The latest integration is expected to improve the efficiency of BitMex’s screening process and allow for proactive monitoring for unauthorized trading activity. Travis Schwab, CEO of Eventus Systems, commented:
“We’ve invested considerable resources in the past year to add functionality to support major digital asset market operators. BitMEX has taken a variety of important steps over the past year to enhance its commitment to market integrity.”
BitMex in Serious Trouble
The announcement comes at a time when BitMex is involved in multiple lawsuits. The biggest blow came from the U.S. Commodity Futures Trading Commission after it charged BitMex for violating the Bank Secrecy Act (BSA) due to the exchange’s allegedly weak AML and KYC policies.
In another indictment, the U.S. Attorney for the District of New York also filed criminal actions against the BitMex owners, Arthur Hayes, Ben Delo, and Samuel Reed, for violating the Bank Secrecy Act and conspiracy to violate the Bank Secrecy Act. The feds have also arrested former BitMEX CTO, Samuel Reed.
This was followed by another lawsuit filed by a resident of Russia, alleging that BitMex evaded AML and KYC policies and received “unlimited funds from anyone without a single question.” This was supposedly why, “hackers, tax evasion, money launderers, smugglers and drug dealers have flocked to BitMEX and flooded the platform with hot cash,” the lawsuit noted.