After pleading guilty to breaching the US Bank Secrecy Act, the co-founder and former CEO of cryptocurrency exchange BitMEX were sentenced to six months of home detention, according to US authorities.

Following his house arrest for failing to develop an anti-money laundering policy at BitMEX, which he started with Benjamin Delo and Samuel Reed in 2014, Arthur Hayes, 36, will also pay a $10 million fine and serve two years of probation.

On Friday, Hayes was sentenced in federal court in Manhattan.

“While establishing a cryptocurrency platform that made him millions of dollars, Arthur Hayes knowingly disobeyed US law that compels corporations to contribute to the prevention of crime and corruption,” said Damian Williams, Manhattan’s senior federal prosecutor.

Prosecutors wanted a “significant” prison sentence, claiming that a $10 million punishment would not be enough to discourage other bitcoin firms from acting similarly.

Hayes’ attorneys had asked for probation instead of home confinement.

Hayes’ representative declined to comment on the sentencing.

Delo and Reed pled guilty and will be sentenced soon.

In 2020, the three were charged with violating federal law by failing to establish a “know your customer” requirement.

Hayes did nothing despite discovering in 2018 that BitMEX was being used to launder earnings from a cryptocurrency breach, according to prosecutors.

BitMEX agreed to pay up to $100 million to resolve accusations of illegally taking client cash to trade cryptocurrencies without being registered and failing to complete consumer due diligence last year.

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