Two years ago the representatives of the US CFTC Comission charged the CEO of the exhcnage and its another co-founder, Benjamin Delo. They were both accused of illegal business. Besides, they violated the KYC rules. As stated by the Ministry of Justice, the exchange itself has been engaged in illegal activities for a few years already.
Also, the transactions were conducted via the exchange bypassing the American legislation with Iranian clients, althought sanctions were in effect against them. After the charges were brought, the prosecutor’s office decided that Hayes and the Case should be sentenced to a year in prison.
To avoid jail time, they pleaded guilty, and agreed to pay fines totaling ten million dollars. But the court hearings do not end there. They will be held in a few weeks in the district court.
The US authorities believe that cryptocurrency exchanges must necessarily comply with the established legislation. If they violate it, then the founders of the exchange will face large fines and even imprisonment for several years.
