Arthur Hayes, a co-founder and former chief executive of cryptocurrency derivatives exchange BitMEX, has been sentenced to serve six months of house arrest for violating US law by failing to establish a compliant anti-money-laundering programme.

Hayes, who was sentenced at a hearing in federal court in Manhattan on 20 May, also was ordered to serve two years probation. He already has paid a $10m penalty in connection with a settlement with the US Commodity Futures Trading Commission.