Cryptocurrency exchange and derivative trading platform BitMEX announced last week the appointment of Malcolm Wright as chief compliance officer of 100x Group, the owner and operator of the BitMEX platform.
Wright will lead 100x Group’s compliance efforts globally while reporting directly to Vivien Khoo, interim chief executive officer and chief operating officer. His appointment comes the same month the Commodity Futures Trading Commission (CFTC) announced the filing of an enforcement action against BitMEX and its related entities for allegedly operating an unregistered trading platform and failing to implement required anti-money laundering procedures.
Owners Arthur Hayes, Ben Delo, and Samuel Reed were each individually charged in the CFTC action, along with being indicted by the Department of Justice (DOJ). Hayes and Reed stepped back from all executive management responsibilities for their respective CEO and CTO roles with immediate effect on Oct. 8, and Delo also relinquished his executive position. Greg Dwyer, also indicted by the DOJ, took a leave of absence from his role as head of business development.
“These changes to our executive leadership mean we can focus on our core business of offering superior trading opportunities for all our clients through the BitMEX platform, whilst maintaining the highest standards of corporate governance,” 100x Group Chairman David Wong said in a statement upon the announcement.
BitMEX has denied the CFTC and DOJ’s accusations, saying in a statement intends to “defend the allegations vigorously.”
Wright is an international speaker and author on virtual assets compliance, according to his LinkedIn profile. He currently chairs the Advisory Council and AML Working Group at Global Digital Finance, an industry-led initiative in defining codes of conduct and best practices for the virtual asset industry.
“For me, compliance is non-negotiable, and a prerequisite for exchanges to be embraced by regulators and institutional investors alike,” said Wright in a press release. “My vision is for 100x Group, through the BitMEX platform, to play a lead role in shaping how this industry collaborates with regulators to ensure everyone can safely avail of digital markets. I look forward to bringing my leadership and expertise to bear as the industry rapidly evolves alongside regulations.”