Former BitMEX Executive Gregory Dwyer Agrees to be Extradited to the US. Here’s What Could Happen to Him

Gregory Dwyer, one of the former executives of BitMEX Derivatives Exchange has agreed to be extradited to the United States of America where he is facing charges for the violation of the US Bank Secrecy Act and conspiracy to violate the Bank Secrecy Act. Dwyer is on trial alongside the trading platform’s former Chief Executive Officer Arthur Melo, and two other executives, and should the extradition request be granted, he will be transferred to the US.

The US Authorities claimed that Dwyer alongside the other executives operated BitMEX without registering it with the Commodity Futures Trading Commission. In addition, the charges outlined that they were negligent in providing the required Know Your Customer (KYC) checks, a data aggregation procedure that can aid the easy tracking of money launderers.

Of the parties to the charges, Dwyer remains the only one who has not appeared in US courts, however, his Lawyer said he has been working with the authorities. According to his spokesman;

“Mr. Dwyer continues to work with the government to ensure a smooth process for his appearance in New York and has every intention of defending himself against these meritless charges.” 

His colleagues including Arthur Melo, Benjamin Delo, and Samuel Reed have all appeared in court and have all been bailed at varying sums pending the conclusion of the trials.

Gregory Dwyer’s Fate

The charges Gregory faces in the United States could land him up to 5 years in jail alongside the rest of his team if they become convicted. All three men who have appeared in courts have pleaded not guilty, and Gregory’s lawyers have posited that the Australian executive will continue to defend himself, a position that implies he may also plead not guilty.

In the meantime, Gregory may also be granted bail just like the others, a bail charge that may range from the $5 million paid by Samuel Reed to the $20 million paid by Benjamin Delo.

BitMEX was also indicted by the CFTC, however, the exchange has settled with the market watchdog after paying $100 million as reported by Coingape back in August. The exchange has initiated a broad restructuring with the exit of the former executives and is currently looking to expand its offerings beyond derivatives trading.