In a move that has sparked widespread debate, U.S. President Donald Trump has reportedly granted pardons to Arthur Hayes, Benjamin Delo, and Samuel Reed, the co-founders of the Seychelles-based crypto exchange BitMEX. The three had previously pleaded guilty to felony charges related to money laundering and regulatory violations.
According to CNBC, prosecutors accused the BitMEX executives of using the platform as a vehicle for illicit financial activities, alleging that their withdrawal from the U.S. market was nothing more than a “sham.” The report also stated that Trump signed the pardons on March 27, effectively clearing the co-founders of their legal troubles.
Following the announcement, Hayes took to X to express his gratitude, simply posting “Thank you” while tagging the official account of the President of the United States.
The legal troubles for BitMEX began in 2020 when U.S. authorities indicted Hayes, Delo, Reed, and Gregory Dwyer, the exchange’s first employee, for violations of the Bank Secrecy Act. Hayes, who was serving as CEO at the time, stepped down amid the legal battle. Despite their guilty pleas, the co-founders had already received relatively lenient sentences, including probation and home detention, alongside a mandatory $10 million civil monetary penalty each as part of a settlement with the U.S. Commodity Futures Trading Commission.
Earlier this year, BitMEX faced additional penalties, agreeing to a $100 million fine to resolve a long-standing legal dispute over anti-money laundering violations. Even with the settlement, the exchange’s reputation took a significant hit, raising questions about its future in an increasingly regulated crypto landscape.
Trump’s decision to pardon the BitMEX founders adds to his growing list of crypto-related clemency actions. Since taking office in January, he has granted controversial pardons, including one to Ross Ulbricht, the founder of Silk Road, a darknet marketplace that played a pivotal role in Bitcoin’s early adoption. Ulbricht had been serving a double life sentence plus 40 years without parole.
Speculation is now swirling around other high-profile figures in the crypto industry who might seek similar pardons. Reports suggest that Sam Bankman-Fried, the disgraced former FTX CEO sentenced to 25 years in prison for misappropriating user funds, is actively campaigning for clemency. Additionally, rumors circulated that Binance co-founder and former CEO Changpeng Zhao, known as CZ, was also seeking a pardon after serving a four-month prison sentence. However, CZ quickly dismissed the claims, stating that he had made no such request.
Trump’s actions have reignited discussions about the relationship between government authorities and the cryptocurrency sector. While some view the pardons as a sign of potential regulatory leniency, others argue they undermine efforts to hold financial misconduct accountable. As the crypto industry continues to evolve, these developments will likely shape future policy discussions and regulatory approaches.
Alejandro Silva Ramírez, Crypto Analyst & Columnist