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BitMEX, a virtual currency derivatives exchange, has agreed to pay up to USD 100 million to settle US charges of unlawfully accepting customer funds to trade cryptocurrencies.

The exchange was not registered to accept these funds, and it also failed to conduct customer due diligence, according to the press release. The US Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN) unit of the US Treasury Department alleged that for six years, BitMEX sold cryptocurrency derivatives to US customers without properly registering with US authorities.

US authorities said BitMEX also failed to implement and maintain proper compliance programs to identify customers and prevent money laundering. The exchange also failed to report suspicious activity.

The five companies charged with operating BitMEX agreed to pay USD 80 million to settle the charges, with another USD 20 million suspended pending reviews. BitMEX, which did not admit or deny the findings, said it has made a series of moves to boost its compliance.

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