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Arrested BitMEX CTO Samuel Reed released on $5 million bond

A court document released today revealed that BitMEX’s former CTO Samuel Reed arrested in connection to the lawsuits against the exchange, has been released on a $5 million appearance bond. 

On Oct 1, Coinfomania reported that U.S. regulators charged crypto derivatives giant BitMEX and its co-founders for operating an unregulated trading platform and failure to establish and maintain a mandatory anti-money laundering (AML) and Know Your Customer (KYC) requirement.

Following the filings, Reed was charged and arrested by the U.S. Department of Justice. However, he has been released with an unsecured $5 million appearance bond with $500,000 in cash. 

According to the requirements of an unsecured appearance bond, Reed would have to appear for court proceedings and, if convicted, would surrender to serve a sentence.

Failure to appear in court would lead to an arrest without a bail option, and he will pay the appearance bond amount alongside other additional fines and court fees. 

The court hearing before Reed was released took place on Oct 1 via video conference. The bond appearance was approved on Oct 3. 

During the hearing, Samuel Reed was represented by lead attorney William J. Trach of Latham & Watkins LLP. Although he has been released, his passport and his wife’s were reportedly seized.

100x reshuffles 

The lawsuits prompted 100x, the holding group for HDR Global Trading Limited, owner and operator of the BitMEX exchange, to reshuffled its management positions. 

Coinfomania reported that the three founders, Arthur Hayes, Ben Delo, and Samuel Reed, alongside the company’s Commercial Director Ben Radclyffe, have stepped down and transferred their various positions to other executive members. 

Although BitMEX continued its business operations, as usual, assuring traders that there is nothing to worry about, customers reacted differently to the lawsuits. 

As reported, data from on-chain market intelligence platform Glassnode revealed that BitMEX customers withdrew about 23,200 BTC, valued at $243 million at the time, just within an hour, making it the highest hourly withdrawal from the platform. 

See also: OKEx Leads Strong Bitcoin Futures Market Off the Back of CFTC Charges.

 

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