In brief

  • Changes have been made to 100x Group following BitMEX charges.
  • 100x Group is the holding platform for HDR Global Trading Limited, the owner and operator of BitMEX.
  • CEO Arthur Hayes and CTO Samuel Reed have stepped back from all executive responsibilities.

The CEO of Bitcoin derivatives exchange BitMEX and its leadership team have stepped down over allegations that the firm was operating illegally and had scant know-your-customer protocols.

CEO Arthur Hayes and CTO Samuel Reed—who was arrested by the DoJ—have stepped back from all executive management responsibilities with immediate effect. Greg Dwyer, head of business development, is also taking a leave of absence.

“These changes to our executive leadership mean we can focus on our core business of offering superior trading opportunities for all our clients through the BitMEX platform, whilst maintaining the highest standards of corporate governance,” said David Wong, chairman of 100x Group.

On October 1, the US Commodity Futures Trading Commission (CFTC) charged BitMEX with money laundering and operating illegally in the US.

In a separate indictment of the same date, the US Attorney for the District of New York filed criminal actions against the owners of the exchange itself. Arthur Hayes, Ben Delo, and Samuel Reed were all charged for violating the Bank Secrecy Act, and conspiracy to violate the Bank Secrecy Act.

In the meantime, VivienKhoo, chief operating officer of 100x Group, is becoming interim CEO. Ben Radclyffe, as commercial director, will have enhanced responsibilities relating to client relationship handling and oversight of financial products.

The BitMEX platform’s continued day-to-day management will continue via the senior leaders of the technology team. “We have an exceptional senior leadership team who are well placed to continue the growth and development of the 100x Group, including completion of the BitMEX User Verification Programme,” added Wong.

At the same time, Bitcoin continues to flood out of the exchange.

Update: This article has been updated with more information on the charges against BitMEX.