Australian Crypto Executive Faces Money Laundering Charges Amid BitMEX Investigation

Australian crypto executive Gregory Dwyer is facing extradition to the US from the island territory of Bermuda for his alleged involvement in several crimes, including money-laundering schemes and operating an unregistered exchange in the US.

Dwyer, referred to as “the Australian Bitcoin Mogul”, was the first employee of BitMEX, a crypto derivatives platform. Dwyer turned himself in to authorities along with BitMEX colleagues Ben Delo and Sam Reed in a surrender agreement with the US Federal Bureau of Investigation (FBI).

All were accused of violating the US Bank Secrecy Act for not establishing an adequate anti-money laundering program and operating an exchange without a licence from the Commodity Futures Trading Commission.

Dwyer Confined to Bermuda on Bail

BitMEX set up shop in Bermuda following a visit by Hayes in July 2018, who met with the territory’s Premier, David Burt. Dwyer moved there the following year, but after the BitMEX case was investigated between 2019 and 2020, Dwyer was required to be extradited to the US for participating in money laundering. 

Last year, Magistrate Khamisi Tokunbo released Dwyer on US$20,000 bail. Dwyer was not allowed to leave the country pending his extradition hearing. 

We have been in touch with the government on this matter and Mr Dwyer has every intention to defend himself in court against these meritless charges.

Jenna Dabbs, lawyer from US firm Kaplan Hecker & Fink LLP, representing Dwyer

According to the US Justice Department indictment filed against Dwyer and his colleagues, they “wilfully failed to establish, implement and maintain an adequate anti-money laundering [AML] program, including an adequate customer identification program, more commonly referred to as a know your customer program [KYC]”.

ATO, IRS Jointly Investigate Crypto Money Launderers

Dwyer is the latest in a growing list of Australians involved in money-laundering schemes using cryptocurrencies. As a result, the Australian Tax Office (ATO) has been targeting cryptocurrencies, reportedly joining forces with the IRS (Internal Revenue Service) in the US to investigate criminals and tax evaders in Australia.

Two months ago, Aamer Abdulaziz, CEO of Phoenix Holding Group, was accused of money laundering and being part of a cryptocurrency scheme called OneCoin.