BitMEX CEO Arthur Hayes Leaves Role After US Charges

The parent group of BitMEX has announced an executive shakeup after U.S. authorities charged the firm over allegedly illegal conduct.

Oct 8, 2020 at 9:24 a.m. UTC
Updated Sep 14, 2021 at 10:06 a.m. UTC

The founders of BitMEX are stepping down from their executive roles at the parent firm of the crypto derivatives exchange soon after U.S. authorities charged the firm over allegedly illegal conduct.

In a blog post Thursday, 100x – the holding group for BitMEX operator HDR Holdings – announced founders Arthur Hayes and Samuel Reed have "stepped back from all executive management responsibilities for their respective CEO and CTO roles with immediate effect."

Vivien Khoo, current chief operating officer of 100x Group, will become Interim CEO, while Ben Radclyffe, commercial director, will take on a supporting role with greater management of client relationships and oversight of financial products.

Along with fellow founder Ben Delo, Hayes and Reed will no longer hold any executive positions within 100x Group, per the post. Further, Greg Dwyer, the head of business development, will take 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, in the post.

On Oct. 1, the U.S. Commodity Futures Trading Commission (CFTC) and federal prosecutors charged BitMEX with facilitating unregistered trading and other violations.

Naming Hayes, Delo and Reed, the CFTC said the platform had offered U.S. customers illicit crypto derivative trading services.

Users of BitMEX have been rushing to withdraw their funds since the news, though a spokesperson for the exchange told CoinDesk that, despite significant withdrawals, “It is business as usual for the BitMEX platform.”

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Bitcoin Mining Appears to Have Survived Ban in China

From September 2021 to January this year, China's contribution to the bitcoin mining network was second only to that of the U.S.

From September 2021 to January this year, China's contribution to the bitcoin mining network was second only to that of the U.S.

2
BitMEX Starts Spot Exchange on Eve of Co-Founder Hayes' Sentencing

BitMEX co-founders Arthur Hayes and Ben Delo will be sentenced for violation of the Bank Secrecy Act on Friday.

BitMEX co-founders Arthur Hayes and Ben Delo will be sentenced for violation of the Bank Secrecy Act on Friday.

3
Terra’s LUNA Gains, Then Slides, After Do Kwon's Fork Proposal

Traders sold the tokens even as founder Do Kwon proposed a separate chain to make up for last week’s implosion of UST.

Traders sold the tokens even as founder Do Kwon proposed a separate chain to make up for last week’s implosion of UST.

4
Breaking Barriers to the Web 3 Creator Economy

The latest innovations in blockchain technology are enabling creators to earn more from their work and achieve an unprecedented level of autonomy.

The latest innovations in blockchain technology are enabling creators to earn more from their work and achieve an unprecedented level of autonomy.