Arthur Hayes

From CryptoMarketsWiki
Revision as of 13:51, 7 April 2021 by MattRaebel (talk | contribs) (Legal Issues)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search
Arthur Hayes
Arthur-hayes.jpg
Occupation CEO (former)
Employer BitMEX, 100x Group (former)
Location Hong Kong
Twitter @CryptoHayes
LinkedIn [arthur-hayes-b493b42 Profile]

Arthur Hayes is the founder and former CEO of the digital asset trading platform BitMEX, as well as its parent company, the 100x Group. He stepped down as CEO in October 2020.[1]

Overview

Hayes worked as a derivatives trader at Deutsche Bank AG and Citigroup for several years. He was reportedly bored by the traditional financial services industry, and became interested in cryptocurrency asset trading, which he regards as similar to traditional asset trading in the '80s and '90s.[2][3][4]

Hayes gained an interest in bitcoin in the early 2010's, and soon began trading. He was among the customers of the now-defunct bitcoin exchange Mt. Gox who lost some of his bitcoins when the exchange was hacked in 2013.

In 2014 Hayes began planning the launch of BitMEX in 2014, along with Oxford graduate, mathematician, and programmer Ben Delo, as well as coder and tech enthusiast Sam Reed.[5]

In July 2020 HDR Global Trading, the parent company of BitMEX, announced that it would restructure into a new holding company called the 100x Group, which would be the new holding company for the BitMEX platform and its related assets. The announcement said that with the new corporate structure 100x would "pursue a broader vision to reshape the modern digital financial system into one which is inclusive and empowering." Many interpreted this as a sign that BitMEX was gearing up to branch out, making new products and offering new services outside of the cryptocurrency trading space.[6][7] In a blog post on BitMEX's website, CEO Arthur Hayes said the new structure of the company will provide BitMEX with "more freedom to explore, incubate and pursue new opportunities and investments, whilst remaining entirely committed to enhancing BitMEX’s leadership position." He also said that the legal structure of BitMEX would not change.[8]

Legal Issues

On October 1, 2020 both the CFTC and the U.S. Department of Justice (DOJ) announced charges against HDR Holdings and its subsidiaries and affiliates which together operate BitMEX parent, as well as HDR's owner founders, Arthur Hayes, Ben Delo, and Samuel Reed. In its civil complaint, the CFTC accused the defendants of operating an unregistered derivatives trading platform that solicited business from and conducted business with U.S. residents. The CFTC also alleged that BitMEX did not comply with U.S. anti-money laundering requirements.[9] In its indictment that was unsealed the same day, the DOJ charged HDR Holdings, its subsidiaries and affiliates, the three owner founders of HDR, and Gregory Dwyer, the head of business development, with violating and conspiring to violate the Bank Secrecy Act by not implementing an anti-money laundering program.[10] Reed, the CTO, was taken into custody in Massachusetts by federal law enforcement on October 1, 2020, while the other executives remained "at large" in the DOJ's terminology.[11] A week later, BitMEX announced that it had made changes to its leadership, which included Arthur Hayes stepping down as CEO.[12]

In March 2021, a court filing revealed that Hayes had discussed surrendering to U.S. authorities on April 6, 2021; the court filing was tweeted about on Wednesday, March 3 by Pavel Pogodin, a representative for the plaintiffs in civil proceedings against BitMEX and its founders.[13] Hayes, who resides in Singapore, was in the process of discussing arrangements that would allow him to remain living abroad and travel to Hawaii to appear remotely in New York for court appearances, eventually appearing in New York personally, according to a court transcript of Jessica Greenwood, assistant U.S. attorney in Manhattan.[14][15]

In April 2021, Hayes surrendered to U.S. authorities and appeared before a federal judge in Honolulu, Hawaii, later getting released on a $10 million bond pending future court proceedings in New York.[16][17]

Education

Hayes has a bachelor's degree from Wharton Graduate Business School.[18]

References

  1. BitMEX announces leadership changes after U.S. government charges, Arthur Hayes no longer CEO. The Block.
  2. BitMEX. Linkedin.
  3. Bored With Banking, This Former Citi Trader Went Full Crypto. Bloomberg.
  4. Arthur Hayes Former CEO/Co-Founder, BitMEX. Bloomberg.
  5. The Rise and Fall of Bitcoin Billionaire Arthur Hayes. Vanity Fair.
  6. The parent company of BitMEX has restructured, and it points to ambitions outside of crypto. The Block.
  7. HDR Global Trading announces new holding structure, 100x Group. PR Newswire.
  8. Introducing the 100x Group. BitMEX.
  9. Press Release Number 8270-20. U.S. Commodity Futures Trading Commission.
  10. Press Release Number:20-218. U.S. Attorney's office of the Southern District of New York.
  11. BitMEX Co-Founders Charged With U.S. Rules Violations. Wall Street Journal.
  12. BitMEX announces leadership changes after U.S. government charges, Arthur Hayes no longer CEO. The Block.
  13. Latest BitMEX news: Arthur Hayes is expected to surrender to US in Hawaii on April 6. Greg Dwyer declined to surrender and US launched extradition proceedings for him from Bermuda. Ben Delo will surrender in NY before end of March.. Twitter.
  14. BitMEX’s Arthur Hayes Proposes Surrender to U.S. Authorities. Bloomberg.
  15. U.S. prosecutors discussing surrender agreement with former BitMEX CEO Arthur Hayes. The Block.
  16. Former BitMEX CEO Arthur Hayes Surrenders to Face Charges. Bloomberg.
  17. Former BitMEX CEO Arthur Hayes surrenders to US authorities: report. The Block.
  18. Arthur Hayes Former CEO/Co-Founder, BitMEX. Bloomberg.