Aussie crypto mogul released on $US2m bail

The Australian bitcoin mogul Greg Dwyer has been released on a $US2 million ($2.7 million) bail after being extradited to the US into the custody of US Marshals.

Mr Dwyer was presented to US authorities at JFK airport in New York last month and was immediately released on bail as per an agreement that was struck between his lawyers and the US Department of Justice.

As revealed by The Age and Sydney Morning Herald this year, the US Department of Justice has accused Bermuda-based Mr Dwyer and the three founders of cryptocurrency exchange BitMEX of deliberately and wilfully breaching money laundering laws including knowingly accepting fake passports by traders from Iran when the country was subject to US sanctions and dealing with customers in the US when it was not licensed to do so.

The four men face five years in jail if found guilty. Mr Dwyer, who was raised in Gordon on Sydney’s north shore and graduated from St Ignatius Riverview and Sydney University, has entered a not guilty plea to call charges. His co-accused have also entered not guilty pleas.

Mr Dwyer’s lawyers said in a statement sent to The Age and Herald via the public relations firm he’s hired: “Greg Dwyer is innocent and the charges against him are baseless. He looks forward to mounting a vigorous defence.”

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Mr Dwyer was the first employee of BitMEX and held senior roles at the company that has found itself at the centre of one of the biggest cryptocurrency scandals in the world. BitMEX had, over a short few years, become a powerhouse in the sector, estimated to be worth $US3 billion ($4.15 billion) and handling trades with a total end value of $US986 billion a year. The success of BitMEX created a celebrity out of its enigmatic chief executive and co-founder Arthur Hayes, who is one of the accused.

Mr Dwyer’s arrival in the US came well after his co-accused presented themselves to face the charges. The Age and Herald revealed earlier this year that Mr Dwyer was fighting an extradition request from the US. He later agreed to the request after a hearing before a magistrate in Bermuda.

Mr Dwyer’s bail agreement allows him to travel between the courts in New York and his residence in Bermuda. US court records show Mr Dwyer’s wife put up a $US1 million security using cash and property as part of the agreement.