Lawyers negotiating on behalf of Arthur Hayes, one of four BitMEX executives and co-owners accused of violating the Bank Secrecy Act by United States authorities, have finalized the terms of his proposed voluntary surrender to a Hawaii court on April 6.
As a letter submitted to the Southern District Court of New York outlines, the counsel’s negotiations with the government on behalf of Hayes began shortly after his indictment was unsealed in Oct. 2020. The proposed bail conditions, which are subject to the court’s approval, stipulate that Hayes, who has lived in Singapore since Jan. 2020, would potentially be released on a $10 million personal recognizance bond, secured by $1 million in cash and co-signed by his mother.
Further proposed conditions include Hayes’ retention of a passport for travel between Singapore and the U.S., and his execution of a waiver of extradition in a form that would be mutually agreed by the government and Hayes’ defense. Citing logistical challenges associated with travel during the COV-19 pandemic, the counsel requests that Hayes be release on the date of his initial appearance on April 6, assuming the bond is co-signed within ten days of that date and that he pays the $1 million cash security within five days.
The letter indicates that the U.S. government has been in contact with the local FBI office in Honolulu to arrange for the logistics and transportation connected with Hayes’ court appearance in Hawaii. Pretrial services interview proceedings will be conducted online, and Hayes would need to remain in Hawaii for a quarantine period before returning to Singapore. The counsel suggests that he will travel to New York for future court appearances and meetings with his lawyers as required by the progress of the criminal case.
As reported, the case against Hayes and his colleagues began on Oct. 1, 2020, when the U.S. Department of Justice filed criminal charges against him and three other executives for alleged violations of the BSA in their operations at crypto derivatives trading platform BitMEX.
In addition, the Commodity Futures Trading Commission filed a civil enforcement action against the four men, in this case for alleged violations of Anti-Money Laundering regulations.
BitMEX co-owner Ben Delo is also in negotiations for a voluntary surrender in New York by the end of March, subject to immigration obstacles being cleared. Meanwhile, co-owner Greg Dwyer has refused to surrender and faces extradition proceedings from his current location in Bermuda. The final defendant, BitMEX CTO Samuel Reed, was already released from custody with a $5 million unsecured appearance bond shortly after his arrest in Massachusetts in October. He has agreed to comply with sentencing proceedings.
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