Trump granted a presidential pardon to the founder of BitMEX, a cryptocurrency trading platform.
In a series of events that have raised eyebrows, former US President Donald Trump has found himself entwined with the cryptocurrency world, particularly the Bitcoin exchange platform, BitMEX.
Despite the negative connotations often associated with cryptocurrency, some argue that it could potentially aid Trump in his perceived attempts to profit from his office. This assertion stems from his creation of the Trump Token and his demand for up to $5 million from entrepreneurs for dinner during his presidency.
Trump's ties to the cryptocurrency world deepen with the pardon of Trevor Milton, the former CEO of Nikola, who was convicted of stock fraud. Milton had donated $1.8 million to Trump's campaign, a donation that some link to his subsequent pardon.
The connection to BitMEX, however, is more complex. The exchange, which only accepts Bitcoins as collateral, allows betting on the rise or fall of cryptocurrencies with a high leverage - up to 100 times. In January, BitMEX was fined $100 million for violating anti-money laundering regulations.
In 2022, the founders of BitMEX, Arthur Hayes, Benjamin Delo, Samuel Reed, and Gregory Dwyer, pleaded guilty to violating the Bank Secrecy Act. The New York prosecutor charged them not for allowing unrestrained speculation, but for intentionally violating the Bank Secrecy Act.
In a twist, Trump pardoned the founders without providing reasons. Some speculate that this move was made to support the cryptocurrency industry, as Trump has been known to view government overreach as unjust. Delo, one of the founders, commented that the Justice Department had "wrongfully targeted" BitMEX and its co-founders.
It's worth noting that BitMEX knowingly allowed US citizens to register using VPNs or the Tor network and advised some to state a different nationality to bypass KYC measures. This practice raises concerns about the exchange's commitment to combating money laundering activities. In fact, BitMEX took insufficient measures against money laundering and allowed the proceeds of hacks on the exchange to be laundered.
As these events unfold, Trump may go down in US history as a potential kleptocrat, a leader who uses their power to enrich themselves and their family. However, the full extent of his involvement in these incidents remains to be seen.
Arthur Hayes, one of the founders, was sentenced to two years probation. The future of BitMEX and its founders, as well as Trump's role in these controversies, continues to be a topic of interest and debate.
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