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By Matthew Russell Lee, Patreon

SDNY COURTHOUSE, Oct 7 – Four executives of the Bitcoin Mercantile Exchange or BitMEX were criminal defendants for violations of the Bank Secrecy Act.   On February 24, with no notice, a guilty plea - each to a single count.

      Back on October 13, 2021 U.S. District Court for the Southern District of New York  Judge John G. Koeltlt held a proceeding. Inner City Press covered it, below.

On May 20, 2022 after Hayes pleaded guilty, he was sentenced - to two years probation, the first six months of which are home confinement with location monitoring. Inner City Press live tweeted it here and below.

  On March 17, 2023 Hayes through counsel made a request to Judge Koeltl - with all substance redacted, photo here.

When co defendant Benjamin Delo came up for sentencing on June 15, Delo's lawyer urged no home confinement at all, just travel back to Hong Kong. And he got it - with thirty months probation the administration of which is unclear. Inner City Press live tweeted it here:

Delo's lawyer: Even home confinement is unnecessary. He is a British citizen, here on a tourist visa. He cooperated with the CFTC.

Defense: Ben was living in Hong Kong. He gave money to Oxford.  [There are more than a dozen suited persons here in the gallery]

Judge: Didn't he know there were US persons im the platform?

Defense: He didn't encourage it

Delo: This case hurts my philanthropy.  AUSA: Yes most messages we used were from Mr Hayes. But many were to Mr Delo. He knew.

Judge Koeltl: Guideline is 6 to 12 months. The US chose not to go for money laundering or fraud. The co-defenfant [Hayes], I sentenced to 6 months home confinement. But Delo has lived in Bermuda. So I sentence Delo to 30 months probation, no home confinement.

On July 13, Delo's counsel filed notice that he will submit a letter motion on or before August 1 to redact portions of the transcript.

On July 18, Delo's counsel emailed Judge Koetlt proposed redactions, the scope of which the public and press cannot see, arguing in a cover letter that the information "should be treated with caution." If so, why did his counsel say it in open court seeking a time served sentence?

Then this: "MEMO ENDORSEMENT as to Benjamin Delo (2) granting [376] MOTION to Redact [367] Transcript. ENDORSEMENT: APPLICATION GRANTED. SO ORDERED. (Signed by Judge John G. Koeltl on 7/19/2022)." Of course, it doesn't change what was said in open court.

Later in July co-defendant Reed was sentenced to 18 months probation, and travel anywhere: "JUDGMENT IN A CRIMINAL CASE as to Samuel Reed (3). THE DEFENDANT: pleaded guilty to count ONE OF THE INDICTMENT. ALL OPEN COUNTS are dismissed on the motion of the United States. PROBATION: Eighteen (18) months on Count One. --The Court will not impose the Special conditions suggested by the Probation Department at Pages 45 and 46 of the Presentence Report. --The defendant will be permitted domestic and international travel, and will be permitted to have contact with Messrs Hayes and Delo. -No fine is imposed, because the fine has already been paid. ASSESSMENT: $100.00. Special instructions regarding the payment of criminal monetary penalties: --The special assessment shall be due immediately. (Signed by Judge John G. Koeltl on 7/22/2022)."

Docketed on June 29, this: "CASH BAIL RETURNED as to Benjamin Delo as per [357] Order, Terminate Motions, dated 06/22/2022, from Judge John G. Koeltl, in the amount of $2,000,000.00, No. 03046969, Check Dated 06/28/2022, payable to SMITH VILLAZOR LLP."

On July 5, Delo's counsel wrote to Judge Koeltl asking that the judgment be amended to allow Delo to speak with Hayes and Reed.

And he got it: "MEMO ENDORSED granting [364] LETTER MOTION Request to Amend Judgment (to reflect that Standard Condition of Supervision Number 8 not apply to contact with Messrs, Hayes and Reed) as to Benjamin Delo (2)... ENDORSEMENT: APPLICATION GRANTED. SO ORDERED. (Signed by Judge John G. Koeltl on 7/5/22)."

On November 16, co-defendant Gregory Dwyer got one year probation: "Minute Entry for proceedings held before Judge John G. Koeltl: Sentencing held on 11/16/2022 for Gregory Dwyer (4) Count 1. Deft Dwyer pres w/atty Jenna Dabbs. AUSA Samuel Raymond. Reporter Sadie Herbert. Deft Dwyer sentenced to one (1) year probation; $150,000 fine."

Jump cut to October 7, 2024, still going, thread:

now at US v. HDR Global Trading a/k/a BitMEX - today was to be sentencing but US has asked for a Fatico hearing, saying loss amount is $128 million.

 Judge: The arguments have gotten too personal in this case. The defense says the US is pursuing this because the sentences I imposed on the individual defendants were too low.

 Judge: I can't impose home confinement on a corporation.

 AUSA: The Fatico hearing would take one day.

Judge: Hearing on Nov 6 and 7, 3500 materials by Oct 21. Adjourned

This case is USA v. HDR Trading Global Limited, 24-cr-424 (Koeltl)

The case is overall case is US v. Hayes, et al., 20-cr-500 (Koeltl)

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