Court documents have revealed that former Bitmex CEO Arthur Hayes could surrender to US authorities from his current base in Singapore.
An initial report from the Block Crypto cited court documents it had obtained that US prosecutors have been in discussions with Hayes for his return to America to appear in court over charges filed against him and Bitmex by U.S. Department of Justice in October 2020.
The latest civil lawsuit followed in the wake of charges brought against Bitmex by the Commodities and Futures Trading Commission earlier that month which accused Benjamin Delo, Samuel Reed, and Hayes and five different corporate entities of illegally offering leveraged retail commodity transactions, futures, options, and swaps on different cryptocurrencies through its exchange.
The complaint further alleged that the exchange owners conspired to violate the Bank Secrecy Act by failing to implement the most basic compliance procedures including Know Your Customer (KYC) practices and Anti-Money Laundering measures. Hayes and his co-accused allegedly withdrew $440 mln from Bitmex’s coffers after reviewing the details of investigations and subsequent allegations by U.S. regulators and law enforcement agencies.
Hayes seems to be playing ball with authorities
According to a transcript from a court hearing in early February, assistant U.S. Attorney Jessica Greenwood revealed that talks had been ongoing with Hayes to arrange a court appearance in Hawaii.
“We have discussed with counsel how to arrange for a voluntary surrender, and he has proposed appearing within the United States in Hawaii and having his initial appearance there and then, subsequent to his presentment in Hawaii, to arrange for a virtual appearance before your Honor rather than appearing in the Southern District of New York physically, that he would appear before your Honor remotely, having surrendered within the United States to the marshals,” Greenwood was quoted as saying in the transcript.
It’s also understood that a bail package is being considered which would see Hayes remain in Hawaii or abroad, and would travel to the US if and when he needs to appear in court or attend legal meetings.
Delo is expected to make appearances in the New York courts while the US government has instituted extradition proceedings against the third co-founder Dwyer. Prosecutors have been unable to come to an agreement for a voluntary surrender with the Bermuda-based Dwyer, hence the need to begin extradition proceedings.