BitMEX Exodus Continues: CFTC Probe Sparks Massive Outflow of Crypto from Exchange
As previously reported by Ethereum World News, the massive and widespread news regarding the U.S. Commodities and Futures Trading Commission’s probe into popular cryptocurrency trading platform BitMEX sparked a massive outflow of funds from the platform.
Now, data suggests that the outflow of funding has perpetuated significantly in the time since the probe was first announced, as critics of the leveraged trading platform now accuse it of committing more broad crimes than simply allowing investors to flout its U.S. trading ban.
Investors Continue to Withdraw Crypto from BitMEX After Yesterday’s Massive Outflow
Yesterday, EWN reported that the rumors regarding the CFTC’s investigation into the crypto exchange has sparked a massive outflow of crypto from the exchange, with TokenAnalyst noting in a tweet that from July 19th to 20th, BitMEX only had $12 million enter its platform while $85 million left it.
This significant outflow of funding came closely after news broke that the CFTC – the regulatory authority in the US that is largely considered to have domain over issues related to the crypto markets – was probing the platform for knowingly allowing US residents to access the platform.
Decrypt elucidated in a recent article that registering for an account on the leveraged trading platform as a US citizen is “trivially easy.”
In the time since, the exodus away from BitMEX has perpetuated further, and current data from TokenAnalyst shows that over $22 million has left the exchange over the past 24 hours, while a mere $9 million has entered it.
Investors Fear That BitMEX Misdoings May Go Deeper Than Allowing Users to Flout US Ban
Although the CFTC’s probe – should it find any damning information – could do significant damage to the embattled platform, it is important to note that many of the exchange’s critics believe that its wrongdoings extend far past what it is currently being investigated for.
Nouriel Roubini, an economist and an outspoken critic of both Bitcoin and BitMEX, said in a recent tweet that the crimes committed by the exchange are likely to extend significantly deeper than many may suspect.
“Indeed, as I exposed in my @ProSyn article the list of crimes committed by @BitMEXdotcom and @CryptoHayes is likely to be much broader than the ones alleged to be investigated by the @CFTC,” he said.
Although only time will tell as to whether or not there is any merit to these accusations, it is highly probable that the damage has already been done, and that BitMEX may never fully recover from the mistrust created by these accusations.