In a notable act of clemency, President Donald Trump has granted full pardons to Arthur Hayes, Benjamin Delo, and Samuel Reed, co-founders of the cryptocurrency exchange BitMEX. This decision was confirmed by a White House official on March 28, 2025.
Background on BitMEX Co-Founders’ Legal Issues
In 2020, U.S. authorities charged Hayes, Delo, and Reed with violating the Bank Secrecy Act, alleging they failed to implement adequate anti-money laundering (AML) and know-your-customer (KYC) protocols on their platform between 2015 and 2020. This oversight allowed users to trade anonymously, raising concerns about potential illicit financial activities. In 2022, each co-founder pleaded guilty, agreed to pay a $10 million fine, and received probationary sentences.
Pardon of Trevor Milton
In addition to the BitMEX co-founders, President Trump pardoned Trevor Milton, founder of the electric truck startup Nikola. Milton was convicted in 2022 for securities and wire fraud, accused of misleading investors about the capabilities and sales of Nikola’s zero-emissions trucks. He was sentenced to four years in prison but remained free on bond pending an appeal.
Reactions and Market Impact
These pardons have elicited mixed reactions. Supporters argue that these actions correct overzealous prosecutions and support innovation in the financial technology sector. Critics contend that such moves undermine regulatory efforts aimed at ensuring transparency and accountability in financial markets.
These developments occur against the backdrop of a cryptocurrency market experiencing notable fluctuations. As of March 29, 2025, Bitcoin (BTC) is trading at $84,193, reflecting a decrease of approximately 2.97% from the previous close. Ethereum (ETH) stands at $1,901.41, down 4.94%, while XRP is priced at $2.18, marking a 5.63% decline. These price movements highlight the market’s sensitivity to regulatory and legal news impacting key industry figures.
Additional Clemency Actions
Furthermore, President Trump commuted the sentence of Carlos Watson, co-founder of Ozy Media, who was convicted of financial conspiracy. These clemency actions underscore the administration’s approach to high-profile financial cases, particularly those intersecting with emerging technologies and markets.
As the cryptocurrency industry continues to evolve, these legal and regulatory developments will likely have lasting implications for market participants and the broader financial landscape.
