Arthur Hayes (banker)

Arthur Hayes is an American banker, entrepreneur, derivative trader, Bitcoin advocate, and a fintech pioneer. He was the CEO, and co-founder of BitMEX along with Ben Delo, and Samuel Reed. BitMEX was founded in 2014, the parent company is HDR Global Trading. Hayes is the former CEO of BitMEX and parent company 100x Group. BitMEX is a digital asset trading platform which has traded trillions of dollars on the cryptocurrency exchange. BitMex is based in Seychelles. Hayes is based in Hong Kong. In October 2020, Hayes stepped down as CEO of BitMEX.[1][2]

Arthur Hayes
Born1985
NationalityAmerican
EducationNichols School, Wharton School of Business at the University of Pennsylvania
OccupationBanker, entrepreneur, businessman
Known forCo-founding BitMEX

Background

Hayes was born in 1985 in Detroit, Michigan. He attended Nichols School, a private preparatory school in Buffalo, New York, and graduated in 2004. His family relocated to Buffalo, New York, after searching for a school that they felt would give him the environment to thrive as a student, and as an athlete. Hayes has created scholarships for students so that they can experience the education that he received at Nichols. His mother Barbara Hayes is quoted as saying "Nichols gave him the setting, the stimulation, and at one point, the scholarship to thrive.” [3][4]

Hayes has a B.S. in economics and finance from Wharton School of Business at the University of Pennsylvania.[5]

Career

Hayes moved to Hong Kong in 2008, to start his investment banking career. He worked for Deutsche Bank, as an equity derivatives trader, and for Citigroup for five years. He worked as the head ETF market maker for both firms. [6]

In 2011, Hayes left Deutsche Bank, and began working for Delta 1 trader for Citibank in Hong Kong.[7]

Hayes interest in Bitcoin started in 2013, after reading the Satoshi Nakamoto white papers.

Hayes is the youngest African American crypto billionaire in history.[4]

He co-started BitMEX in 2014.[8]

In March 2019, Arthur Hayes contributed $2.24 million to the Jackie Robinson Foundation (JRF) Scholars program.[9]

In July 2019, Nouriel Roubini made claims to the Commodity Futures Trading Commission (CFTC), and United States Department of Justice (DOJ) that BitMEX was involved in illegal activities.

In October 2020, Hayes along with his co-partners were indicted by the U.S. Department of Justice for an illegal operation. The charges by the (DOJ) in the case (United States vs Hayes et al), stating that Hayes and partners refused to register the company in the United States, and that they had 'thousands of US based customers'. Which is a violation of basic compliance standards. An operation DOJ says enabled money laundering activities under the bank security act. The CFTC charges that the illegal operations enabled money laundering activity under the Bank Secrecy Act.[10]

BitMEX is the first crypto exchange to be charged under the bank security act. The laws require that transactions that are over $10,000 must be reported. It is known as Know Your Customer (KYC) data. Hayes stepped down from BitMex in October 2020. Alexander Hoptner replaced Hayes as CEO of BitMEX.[8][4][11]

In April 2021, Hayes surrendered to United States Authorities in Hawaii on changes of violations with the U.S. Department of Justice.

According to an article published in the Financial Insight Zambia Limited, on February 9, 2021, in their opinion Arthur Hayes' crime is that he refused to allow the CFTC to obtain the account information on Bitmex's customers. [4]

United States citizens used Virtual Private Network (VPN accounts) to set up BitMex accounts. Because the BitMEX platform is not registered in the U.S. or Canadian province of Quebec their citizens are prohibited from using the platform. Citizens were able to mask their locations by using (VPN) networks.[12][13]

An article published in the Wall Street Journal on August 10, 2021, stated that a settlement was reached between BitMEX and the CFTC. BitMEX agreed to pay a $100 million fine to resolve the issue.[14]

Quotes

Mr Hayes is quoted as saying the company he co-founded BitMEX was on ‘the promise that humans for the first time have a choice in how they transact money and a choice between a government central bank-led monitor system and one that's led by open source software and math’.[15]

“The JRF Scholars program was critical to my professional development as a student from Buffalo, New York," said Hayes. "Providing this scholarship experience to other highly deserving students from Western New York will support their development into future leaders."[9]

References
  1. "The Rise and Fall of Bitcoin Billionaire Arthur Hayes". Vanity Fair. February 4, 2021. Archived from the original on August 4, 2021. Retrieved August 6, 2021.
  2. "Arthur Hayes Biography | Booking Info for Speaking Engagements". www.allamericanspeakers.com. Archived from the original on July 29, 2021. Retrieved August 6, 2021.
  3. "Notable Alumni – Nichols School". www.nicholsschool.org. Archived from the original on August 1, 2021. Retrieved August 6, 2021.
  4. Chibesakunda, Lombe (February 9, 2021). "The Story of Arthur Hayes, the Worlds Youngest Black Billionaire and the focus of a DOJ Attack". Financial Insights. Archived from the original on August 1, 2021. Retrieved August 6, 2021.
  5. "Class act / An outstanding young Western New Yorker". The Buffalo News. Archived from the original on August 4, 2021. Retrieved August 6, 2021.
  6. "Arthur Hayes". Jackie Robinson Foundation. Archived from the original on September 14, 2021. Retrieved September 14, 2021.
  7. "Arthur Hayes". Archived from the original on August 5, 2021. Retrieved August 6, 2021.
  8. "The U.S. Government vs. Black Crypto Billionaire Arthur Hayes: 7 Things To Know". Moguldom. July 9, 2021. Archived from the original on July 30, 2021. Retrieved August 6, 2021.
  9. "BitMEX CEO Arthur Hayes Donates $2.24M To The Jackie Robinson Foundation". Jackie Robinson Foundation. Archived from the original on September 14, 2021. Retrieved September 14, 2021.
  10. "Archived copy". Archived from the original on October 5, 2021. Retrieved August 6, 2021.{{cite web}}: CS1 maint: archived copy as title (link)
  11. "Founders And Executives Of Off-Shore Cryptocurrency Derivatives Exchange Charged With Violation Of The Bank Secrecy Act". www.justice.gov. October 1, 2020. Archived from the original on August 12, 2021. Retrieved August 6, 2021.
  12. "r/BitMEX – US citizen used fake info + VPN to trade on BitMEX, now 2FA doesn't work and I can't access account PLEASE HELP". reddit. August 24, 2018. Archived from the original on August 5, 2021. Retrieved August 6, 2021.
  13. "VPN for BitMEX – How to use BitMEX in USA [2021 Updated] 2021". July 19, 2021. Archived from the original on August 5, 2021. Retrieved August 6, 2021.
  14. Michaels, Dave (August 10, 2021). "BitMEX to Pay $100 Million to Resolve Regulator's Lawsuit Over Crypto Derivatives Trading". Wall Street Journal. Archived from the original on August 12, 2021. Retrieved August 12, 2021 – via www.wsj.com.
  15. "No Permission Needed – How Arthur Hayes, BitMEX CEO, Is Self-Made With A Multi-Billion Dollar Trading Platform – Forkast". forkast.news. Archived from the original on August 11, 2021. Retrieved August 11, 2021.
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